Show me the volume! Yes, it is the summer doldrums, but volume on the PowerShares QQQ Trust (symbol: QQQ) is more than pathetic. Even the high frequency trading machines are on vacation.
See figure 1 a daily chart of the QQQ. In the middle panels are volume bars, and as the gray oval shows, you need to squint real hard to find the volume over the past 4 days.
Figure 1. QQQ/ daily
Now focus on the lower panel which shows the On Balance Volume indicator. Note how this indicator rose in the Quarter 1, 2012 Operation Twist induced rally. At least OBV was supportive of rising prices. Now focus on the summer rally. Not only is OBV below its 40 day moving average (blue line), but it is actually trending lower. This is one serious negative divergence!