Market down on light volume? That's a change!
Today the market traded about 150 million shares. That's another light day, which normally has a positive effect on the market. Usually the buy programs come in and rally the market higher at the close. That didn't happen today. What is going to happen with higher volume the rest of the week? I suspect a nice down move is coming, and it will take many by surprise.
The Fed's are auctioning off $195 Billion Dollars worth of Treasury Bonds on Tuesday, Wednesday, and Thursday. I look for the dollar to rally during that time period, then collapse back down after the auction is over. Since the market has been trading the opposite of the dollar I expect the market to fall when the dollar is rallying.
Then, on Friday, I expect the dollar to be forced down again and the markets should rally the following week to that magic 1100 SPX number. But for this week I'm looking for a low of 104 SPY or 102 on EOD Thursday, or Friday.