NEW YORK (TheStreet) -- The stock indexes on Monday extended their gains from Friday. The DJIA was higher by 16.05 points to close at 16569.98 while the S&P 500 was higher by 5.33 to close at 1936.92. The Nasdaq gained 30.43 to finish at 4401.33 and the Russell 2000 was higher by 10.58 to close at 1141.93.
It shall be noted that all the indexes were well off their daily highs and the volume continued to decelerate on the up days versus the down days.
The S&P 500 Trust Series ETF (SPY) volume came in at over 74 million shares. That volume was down from the 117 million shares Friday when the S&P 500 was up over 1% and well below the 135 million shares traded last Thursday, a down day.
Again, traders need to pay attention. Decelerating volume on an up day is not bullish. This has been the trend for 2014. I will continue to call this to your attention. It does matter and it is not different this time as many Wall Street pundits would lead you to believe.
I am still of the opinion that the upward movement in the stock indexes the past two trading days is nothing more than a relief rally from a severe oversold condition in the indexes. I will change my mind when I receive the signal from my internal algorithm indicators. Until then, I will trade from a bearish point of view. Having a risk management process is the key to trading.