I will add that one of the main problems with this rally is the ever declining volume on the rally -- as prices have increased starting from early March to the current level volume has decreased. I think some of that is due to the summer months also called the summer doldrums. I also think there is a fair amount of concern about the validity of the rally in light of the economic backdrop.
However, it's important to note that no rally is technically perfect -- you're never going to get everything you want in a rally.
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On SPYs at least, volume is quite good relative to pre-June 2008. Volume became so high during the plunge that we have a distorted sense of what it ought to be.
--Charles of MercuryRising
www.phoenixwoman.wordpress.com
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