Another low volume no news rally. Today looks to be another culprit of the window dressing effect. The S&P finished higher by 0.91%. Bank stocks finished the day higher by more than 1% while tech, small caps and transport stocks were noticeably weak. Oil was strong once again and finished up over 3% while natural gas lost 3.8%.
Holiday weeks tend to be low volume with a positive bias so it won’t be surprising to see this low volume upside continue. The real test will begin next week as earnings pick up momentum and the seasonally strong commodity trade reverses.