Chart of the Day - Wednesday, June 6, 2024

🏆 Today’s Chart of the Day was shared by Barchart (@Barchart).

• Today was a classic Summer trading day. The S&P 500 ($SPY) was completely unchanged (0.00%), and volume was extremely light. According to Barchart, this was the lightest volume in 18 years.

• Volume has steadily declined since the April low, while price has rebounded to all-time highs. The 20-day average volume for $SPY hasn’t been this low since July 2019.

• Old school technical analysis says volume should confirm the trend by increasing with price. However, in today’s market, volume typically declines as an uptrend becomes established.

The takeaway: Volume has dried up recently while $SPY has rallied to new highs. However, that’s nothing unusual. As they say, “Never short a dull market!”