😂 Damn, this is so weird... The S&P 500 ETF just recorded its lowest trading volume since 2004, with only 22.6 million shares traded on Friday. What does that mean?
As you can see in the chart, trading volume below is indeed extremely low. Volume has a pretty strong relationship with price movements. Generally speaking, high volume often shows up when the market is reversing, whether at a bottom or a top. So what about low volume?
Low volume often means there’s little disagreement about the market’s direction: there isn’t much selling, but there isn’t much buying either. A drop in volume often signals that the current trend will continue. So what happens next?
If there’s no unexpected negative news, the S&P 500 could well continue its previous trend and rise a bit further. If volume suddenly picks up later on, the market may be about to reverse.
This outlook is based on there being no unexpected negative news. But with the upcoming U.S. midterm elections and continued uncertainty about how long the U.S.-Iran conflict will last, there’s still plenty to keep an eye on. Let’s stay cautiously optimistic and avoid using leverage blindly. And don’t forget to follow Xiaoqin so you can see my daily updates on U.S. stock market news~
As you can see in the chart, trading volume below is indeed extremely low. Volume has a pretty strong relationship with price movements. Generally speaking, high volume often shows up when the market is reversing, whether at a bottom or a top. So what about low volume?
Low volume often means there’s little disagreement about the market’s direction: there isn’t much selling, but there isn’t much buying either. A drop in volume often signals that the current trend will continue. So what happens next?
If there’s no unexpected negative news, the S&P 500 could well continue its previous trend and rise a bit further. If volume suddenly picks up later on, the market may be about to reverse.
This outlook is based on there being no unexpected negative news. But with the upcoming U.S. midterm elections and continued uncertainty about how long the U.S.-Iran conflict will last, there’s still plenty to keep an eye on. Let’s stay cautiously optimistic and avoid using leverage blindly. And don’t forget to follow Xiaoqin so you can see my daily updates on U.S. stock market news~