Well, volume matters. It always matters. Perhaps we cannot figure out how the rally took place in 2010 on falling volume and maybe, just maybe, a rally that does not have sufficient volume support ends up leading the market to crash and burn city. After all, the masses did not buy and that implies they did not see reason to buy - or better yet, to chase it.
Volume is the stuff that tells us if price is lying to us.Yes, I know price rules but price can be pushed around a bit.
- In price there is knowledge (Ralpha Acampora and Alan Shaw argue over who said it first)
- In volume there is truth (Dennis Jarrett)
This is a bear market and indeed rallies are exciting. But the trend is down and volume tells us that the August - September gains were corrective, not impulsive, to borrow a little Elliott Wave terminology.