Today's rally is impressive by all standards. The rally is broad based as all sectors are trading higher across the board. Semi's, energy, retail, financial stocks and most every other industry group are trading sharply higher today. Is there any negative to this stock market surge to new highs? Ah, the small negative to today's rally is the volume. On January 28, 2011 the SPY sold off on 300 million shares. That is real selling pressure, however, today's rally the SPY is trading just 150 millions shares as of 4:00 pm EST. This reminds me of the old Wendy's restaurant commercial in the early 1980's when an old lady says, "where is the beef?" Light volume does not mean that the market cannot go higher. It just means that when the selling pressure does come into the market the downside could be sharp.
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