Monday Morning Musings: Where's The Volume?

The market is slightly higher in early trading, amid relatively light newsflow. In economic news, pending home sales rose +2.1% vs. expectations of 0.3%, but the housing news lately has been pretty weak overall. Markets in Asia overnight were mostly lower, with Japan still dealing with radiation levels. European markets are mixed this morning. The dollar is down a little, but most commodities are lower also. Gold prices have pulled back to $1418, and oil prices are down also near $104.50. The 10-year yield is higher to 3.45%; and the VIX is up 2% to 18.33. Trading comment: All of the major indexes have recaptured their overhead 50-day moving averages. That is a good techincal sign, but the volume last week was lackluster at best. After selling off on higher volume over the last few weeks, the bulls are looking for confirmation that this market has found its footing by showing conviction (high volume) buying. A few leading growth stocks have broken out to new highs, but volume there too has been somewhat suspect. I don't want to throw too much cold water on the potential for a new leg higher, I'm just pointing out that volume was lacking last week. But the price action is promising, and maybe volume will begin to pick up. This week brings quarter-end on Thursday, so we could see some window dressing activity on the part of portfolio managers.