Market Volume Slowing Down

Market volume has been very light over the past few trading sessions. Although stocks are seeing an upward trend, it make be short lived. We have noticed many stocks have risen on only 1/3 of the 10 day moving averages in volume. Historically, a light volume rise into the summer is followed by a slow selloff, possibly 8-12%. Although this years market is creating history rather than following it, we still see a potential for a downturn. The government has been holding up the economy but the fact is there is just no jobs, and compiling job losses. With oil and material stocks rising, it is evident a decrease in supply is fueling this rally. However, with that comes a weak demand, which without an increase will ultimately cause a serious struggle. Keep a close watch on commodities and supply / demand curves to see what the next 6-12 months will entail for the market.