|The Nasdaq continued higher last week as volume decreased dramatically. The weekly chart shows this index wedging higher within the right shoulder of a bearish head & shoulders pattern while the S&P 500 makes new all time highs on almost a daily basis.|
The current low volume rally is not without precedence. According to Kevin Marder, the Nasdaq rallied for nine weeks in 1996 with only one accumulation day on above average volume. As of last week, the Nasdaq has rallied for six weeks with just one accumulation day on above average volume.