NEW YORK ( TheStreet) -- That the Standard & Poor's 500 Index's move above 2,000 was accompanied by low volume Tuesday may not be as ominous as many believe.
The PowerShares QQQ (QQQ) , SPDR Dow Jones Industrial Average (DIA) and SPDR S&P 500 (SPY) moved to record levels this week on improving U.S. macro-economic data and talk of stimulus in Europe, finally. And this comes despite Russia apparently sending troops into Ukraine.
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The narrative has been the same for many months now: The economy is improving and corporate results remain steady, but investors are waiting on the sidelines. The issue of low volume, though, appears to be a structural one. The chart below shows the average monthly volume of the S&P 500 from 1950 to the present day. Average monthly trading volume in the S&P 500 remained relatively flat from 1950 until the turn of the millennium, when it grew exponentially before peaking in October 2008. >>Read More: ConocoPhillips, Cut by Warren Buffett, Can Be Yours on the Rebound