This chart shows the price action of the S&P 500 since last Fall (click on the chart to enlarge). I found the following pattern intriguing. Do you agree?
.... High volume in November and the market rallied.
.... Volume declines as the market moves higher.
.... In January volume started rising and eventually the market dived.
.... Volume soared and the market bottomed in March with volume rising as in November .
.... The market rallied in March and volume declined.
What is reasonable to expect? I let you fill the blanks.
To find out more about my in depth view of the markets and my strategy just visit our website https://www.peterdag.com/ where you can review The Peter Dag Portfolio. You can also call me at 1-800-833-2782 to discuss your specific money management needs. I will be happy to speak to your investment group on how the business cycle impacts investment strategies and the choice of asset classes. George Dagnino, PhD
Editor, since 1977
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