There is lot of negative talk about the absence of stock trade volume on the way up in the equities with pundits citing it as an ominous sign that it signals an eventual collapse in the stocks.
Above is a connection between equity spikes and volume on that day for the last 4 months and one can clearly see that volume spiked higher on days the Dow rallied.
Further, stocks look to be headed higher to Dow – circa 14,000 – this year and they look to have, at least, 2 more sell-offs ahead of it self.
Is there one on our way soon, like in the next several months? Sure but those solvent will ride higher.
All this means that it depends which way are you invested.
If a trader, a close above 13,300 means go long, if not and investor, keep the good stocks.
With Spain pretty much subdued it may turn out that those who sold in May would have to buy back into it.
Bottom line: Stocks may go higher if 13,300 gets taken out.