price volume: You can relax, according to Market Watch. I was unable to detect any relationship in the historical data between trends in price and volume, at least since 1972 which is how far back I was able to obtain data . To be sure, measuring the impact of lower trading volume is anything but straightforward, since trading volume has grown steadily over the years. As you can see from the chart below, the five-day moving average of NYSE volume currently is a third less than where it stood in mid-December. To overcome that long-term uptrend, I calculated for each month since 1972 a ratio of its NYSE trading volume to the trailing 12-month average. I came up empty. I then measured whether that moving average was correlated with the S&P 500's SPX, 1.32% return over the subsequent month-, quarter-, six months-, and one year.
(news.financializer.com). As
reported in the news.
Tagged under price volume, nyse volume topics.