Archived IMT (2009.04.16)

Falling trading volumes in the major US equity indices emerging despite the gains of the past 5 weeks reduce the conviction of the current rally. Now how volumes were on a rising trend during the selloffs of Oct-Nov and Jan-Mar, but were on the decline during rising prices. Reiterating my analysis about the 2-month cycle in equity indices, it is plausible to expect indices carrying through a consolidative move until earnings season ends on April 26.