The Dow after testing 10604 has mounted a rather strong rally. This is about the only positive development. Volume has been dismall; in fact in the past 10 days the dow has not managed to rally once on volume of 7.5 billion shares. Today (Aug 29, 2011), the Dow closed up a blistering 250 points but volume could not even hit the 5 billion mark.
Long term up volume is on the decline and the 3 moving averages of new highs and new lows we maintain have been declining since the begining of 2010. At this point all 3 moving averages of new highs (30, 100 and 1 year) are over 70% below the peaks they put in 2009. Note in 2009 the Dow had not yet traded to a new high, so its interesting that every new high after that took place on lower volume and with lower new highs on all 3 moving averages.
Long term players should flee the markets as things are going to get very bad in the weeks and months to come