Markets Keep Gains After Bernanke Speech
This afternoon, the Federal Reserve Bank Chairman Ben Bernanke just gave a speech in which he said the politicians should raise the U.S. debt ceiling. The institutional investors seem to love this news as the major stock market indexes are all soaring sharply higher on the day.
It is important to note that the trading volume is not very heavy during the trading session. This is telling us that the major stock indexes may just trade higher in the near term. Often, major bottoms are made with heavy volume such as the March 16, 2011 low. This afternoon the SPDR S&P 500 Trust(NYSE:SPY) is trading just 106 million shares as of 3:08 pm EST. The SPY traded 238 million shares last Friday when the market stock indexes sold off sharply into the weekend. When we see this type of volume today, it tells us that there is still very little conviction by the major financial institutions that move markets.