Option Data - Scans
Much has been said about the decreasing market volume, and how seemingly every rally has a lack of participation. This view has been used to argue a bearish point of view on the market, however, I will use that view to argue a bullish point of view. The reason the volume is so low is because of a lack of conviction. Since there has not been a correction in over 3 years, investors are too nervous to put money to work. This is either because they think the market is overbought, or that the current fundamentals do not warrant the current S&P 500 valuation.