The first article clearly shows that equity market volumes are rapidly declining, which is a precursor to major downtrends.

The last chart below shows that the yield on 10 Year Treasury bonds has just hit 3.50% and is still rising. Nobody wants them!

Regards - VHF

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Is Volume A Concern

TPC

May 26, 2009

One characteristic of a bear market rally is declining volume as the advance tires out. As the recent powerful rally gets north of the 35% level we’re beginning to see a dramatic decline in upside volume vs downside volume. This is a phenomenon we’ve seen near recent bear market rally peaks. Today’s volume is particularly light while money flows show sharp outflows. It looks to me like the smart money is selling into the upside.

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