This Is a Stock Market With Some Serious Volume Issues -- Watch Out!

NEW YORK (TheStreet) -- This stock market has some serious issues. Tuesday saw another day of no volume. This has become a common theme in 2014. I understand that the total U.S. equity volume has been in a decline for the last five years. I get that.

But this is somewhat different. There is a genuine concern of a liquidity risk in this market. The total U.S. Equity Volume on Monday was down -21% and down -41% versus its one- and three-month averages. I have been hammering at the volume issue for a while now. This has the makings of some serious problems ahead. When down day volume is accelerating and up day volume is decelerating, that is not a good thing.

In Tuesday's trading, the volume was once again very anemic and the lack of volume is once again the headlines in my universe

The DJIA closed down 21.29 points in Tuesday's trading at 16722.34 while the S&P 500 was virtually flat at 1924.24. The Nasdaq was lower by 3.12 at 4234.08 and the Russell 2000 was down 2.75 to close at 1126.15

The DJIA, S&P 500 and the Nasdaq are all in overbought territory. The Russell 2000 is the only index that is rational. That index not overbought.

The negative divergence continues with the Russell 2000. When the Russell 2000 does bounce higher it makes a lower high. It is the only index that is in Trend Bearish territory as I have been mentioning. That is not good.

The consensus from old Wall Street is that as long as the market is going up, everything is just fine.

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