More important than the rally we have seen over the past month, is what it does with the pullback that we are currently witnessing. And so far so good. Volume is extremely low – and I’m not talking moderately lower, I’m talking significantly lower than the volume on markets sessions with overall positive returns and significantly lower than other days in which we have seen major sell-offs. Even if we reach a point where we retrace 50-75% of the market’s gains, that would not worry us too much as long as the volume remains at current levels assuming at which point the market is able see a wave of buying power re-emerge.

Here’s the NASDAQ and S&P charts…