QE Study Of Low Volume

I find that lower volume when an index churns is a more reliable sign of a topping pattern. Often times investors/traders point to an index that is rising on lower volume and they expect it to fall and it never does.

I would be on the look at for a climax top at the end of a low volume rise to be a signal that the markets are going to reverse. We’re in a grind higher pattern as far as I can see for now.

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.