Big Volume

There was a very bad sign which some may have glossed over.  Nasdaq volume at 2.8 B, NYSE volume at 1.4 B.  Just this past Friday on another strong up day, Nasdaq volume was just 1.6B and NYSE volume was 1.1 B.  This past Monday, another up day, it was Nasdaq 1.7B, NYSE 0.9 B. 

The massive volume that took place yesterday, on a big up day is an ominous sign.  Usually when you get this at the bottom, its a positive sign.  But when you get this kind of heavy volume on a big up day on good news, that is a negative.  A lot of stock changed hands on Thursday from weak hands to strong on the short side.  On the long side, those that are buying in now are nervous, either because they were too underinvested and are being forced to chase even when they don't really want to.  They will be easily shaken out on the next pullback.  The big volume tells me a lot of sellers met those eager buyers.