[video] Quick Take: Trader Not Impressed With Buying on Low Volume
NEW YORK (TheStreet) -- The S&P 500 is higher Wednesday but not everyone is impressed. Ben Willis of Albert Fried & Company told TheStreet's Debra Borchardt that while all three major U.S. indices are higher, it's on very low volume.
This makes him skeptical, he said. It's not a positive sign for stocks to move higher on low volume.
Willis added the CBOE Volatility Index (VIX.X) seems likely to move higher into Thursday's close because volatility is present on both up and down days.
The current rally isn't healthy and the correction is not over yet, he warned.
Investors should also be aware of Friday's nonfarm payrolls report for January. Holiday workers are being released from their employers and lower-than-expected results could push markets lower once again.
Willis suggested long-term investors try not to get too caught up in the day-to-day moves of the market. Instead, they should use the larger stretches of down days to add to their positions while the traders benefit from the intraday volatility.
-- Written by Bret Kenwell in Petoskey, Mich.Follow @BretKenwell
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