Where's the Volume?

Below we highlight a price and 1-month average volume chart for the S&P 500. Many market participants have been questioning the rally due to a lack of volume.

While it is noteworthy that volume has declined, we'd note that volume is typically lighter when the market is going higher and heavier when it's going lower. Current volume levels seem much lower than normal because of the spike seen during the credit crisis from July '07 to March.

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