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As the week wears on, we think the markets will, too. If you are one of those who say volume doesn't matter, then you may want to skip over this part.

To me, volume matters, and when you break it down, yesterday's is an amazingly low number. Friday's total volume in the S&P 500 futures (e-mini) was 1.5 million contracts with 225,000 contracts coming from Globex, pre-8:30 open. When you take out the 225,000, total volume drops to 1.25 million contracts traded in the day session.

Yesterday's volume was 400,000 contracts lower than Friday. When you take the 225,000 contracts from Globex out of the 1.1mil total, that brings the total down to 875,000, and when you take out 50% for program trading, that leaves only 435,000 contracts traded in the day session. Volume equals trade, and yesterday there was no volume and there was no trade. Total volume in the CME Group's S&P 500 options stood at 14,000 contracts at the end of the day.

Yesterday the S&P traded into another all-time contract high and the Nasdaq Composite closed at a new 13-year high. The bulls have yet to take a rest. The way we see it is the S&P needs to rebuild its thrust. While we expect higher prices, we cannot rule out a pullback this week before the bull market resumes. Today's jobs number should not have much effect but all eyes will be on the number this morning. We lean to selling rallies and buying weakness.

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