Bear Market Rally? Look at Gains & Volume
Posted By Barry Ritholtz On April 24, 2009 @ 1:28 pm In Markets,Technical Analysis,Trading | Comments Disabled
In the light of today’s rally, perhaps it would be instructive to look at the volume on some past rallies. Fortunately, William Hester at Hussman Funds [1] has done the heavy lifting for us, as these two charts show:
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Changes in S&P 500 Leading to, and Coming Off of, Major Troughs
(Note: Data set = bear-market bottoms since 1940 )
Volume Changes From Major Bottoms
(Note: Data set = bear-market bottoms since 1940 )
Charts courtesy of Hussman Funds [1]
Eventually, one of the Bear market rallies will be the one that is the turnaround. But until then, its guilty until proven innocent.
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Source:
Trading Volume Separates Bull Markets from Bear Rallies [1]
William Hester, CFA
Hussman Funds, April 2009
http://www.hussmanfunds.com/rsi/rallyvolume.htm
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URL to article: http://www.ritholtz.com/blog/2009/04/bear-market-rally-look-at-volume/
URLs in this post:
[1] Hussman Funds: http://www.hussmanfunds.com/rsi/rallyvolume.htm
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