Lightest Volume Week of the Year

http://runningofthebulls.typepad.com/toros_running_of_the_bull/2007/10/lightest-volume.html



Last week was the lightest volume week of the year, with an average NYSE daily volume of 1.099 billion shares. Four of the 10 lightest trading days of the year were last week, with the second lightest on Monday (Columbus Day), the fifth lightest on Friday, the seventh lightest on Wednesday and the tenth lightest on Tuesday.

Of course, markets can still rise on light volume. The danger, however, is that it doesn't take much to knock the market down, as we saw on Thursday when volume came in at 2pm and the S&P 500 fell 200 points from the high.

The market has risen 14% off the lows August 16 lows. However, this rally has been on the back of seven of the eight lightest volume weeks of the year. The market is not rallying on a sturdy foundation.