Markets Keep Gains After Bernanke Speech

This afternoon, the Federal Reserve Bank Chairman Ben Bernanke just gave a speech in which he said the politicians should raise the U.S. debt ceiling. The institutional investors seem to love this news as the major stock market indexes are all soaring sharply higher on the day.

It is important to note that the trading volume is not very heavy during the trading session. This is telling us that the major stock indexes may just trade higher in the near term. Often, major bottoms are made with heavy volume such as the March 16, 2011 low. This afternoon the SPDR S&P 500 Trust (NYSE:SPY) is trading just 106 million shares as of 3:08 pm EST. The SPY traded 238 million shares last Friday when the market stock indexes sold off sharply into the weekend. When we see this type of volume today, it tells us that there is still very little conviction by the major financial institutions that move markets.

About Nicholas Santiago 575 Articles


Nicholas Santiago started trading in 1991. In 1997, he became a licensed Series 7 and 63 registered representative. He managed money for a large, affluent private client group. After applying his knowledge to his client base, he decided it was time to begin teaching those interested in learning his methods. He is an expert in Technical Analysis. He has become an accomplished technician in the studies of Elliot Wave, Gann Theory, Dow Theory and Cycle Theory. In 2007, he partnered with Gareth Soloway to form InTheMoneyStocks.Com and realize his dream of educating others about the truth of the markets.

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