From cnbc: After a summer of low volume and high gains, the stock
market soon will face the challenge of whether it can sustain a rally once the
crowd comes back from vacation. A market
that rallies without a lot of participation is generally standing on shifting
ground, at least according to Dow Theory, which uses volume confirmation as a
key tenet in testing strength.
With September historically a month where trading activity rises,
and when volatility increases, the stock market faces a critical test.
"Our macro technical work displays an ominous
foreboding which strongly suggests that the powerful summer run in rates, crude
and global equities will soon be at end," Richard Ross, global technical
strategist at Auerbach Grayson in New York, said in a note to clients. "With both volume and volatility absent
from the advance, and a myriad of major markets and macro proxies steaming into
stiff resistance during a period of vulnerable seasonality, conditions are ripe
for a rapid risk reversion to the mean," he added….
Read all about it at http://www.cnbc.com/id/48703726
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