Where is ze volume? (again)

Well there is not much more to say. Market keeps on defying sense and technicals. We went straight from 991 to 1035 without a single stop in between. Now something that has been interesting the past few days is the volume again.

We are able to continue to drive prices higher on lower and lower volume.

Now this chart is a bit subjective - however, if you see on any previous pull back we were able to match the daily down volume from previous sell offs or exceed them. I circled previous pull backs and the following rallies in green - as you can see volume has been able to match the down volume or exceed on most occasions - now here, look at the difference from the sell volume earlier last week and compare it with the follow through - this is absolutly dismisall. We are inches away from the high of the year, have a new closing high on many indexes but not a single bit of follow through with strength. Price shows strength - momentum shows weakness.

Futures are already working their way up by having retested previous year highs but are coming off those highs now. Looking at the above chart, volume continues to decline as we move higher in prices. We have been saying this for many months now - and I keep on referring to low volume yet here we are again at the edge of moving the market higher into a new range on the upside. How much lower can volume go? How much higher can we go at those volume levels?