The markets are hovering lower into the lunch hour. This is a rare thing of late as volume remains at anemic levels. The light volume has helped the markets float higher. The markets have been floating higher for six straight weeks. The SPDR S&P 500 ETF (NYSEARCA:SPY) is trading at $141.80, -0.42 (-0.30%).
Friday, the SPY hit its 52 week high double top. The move up has been on the lightest trading volume in 5 years. This is very worrisome as large investors and institutions are obviously not buying at these levels. In addition, the volatility index is not making new lows like one would assume, telling us storm clouds are brewing on the horizon.
As the markets continue to show a little weakness today, certain leading stocks are sharply higher. This is also strange as it tells us the markets would be much weaker if it were not for these key plays. Apple Inc. (NASDAQ:AAPL) is trading at $662.88, +14.77 (2.28%). This is a big gain yet not enough to even get the NASDAQ back to the flat line.
All combined, the only chance this market has of going higher is light volume. Expectations are already built in for QE3 and the ECB to buy Euro Bonds. One small break in expectations and the markets may be on an ugly track towards destruction.