ETF Trends
ETF Trends

With the Fourth of July tomorrow, exchange traded fund (ETF) activity, and market volume activity in general, is low. This stagnation likely will continue through the remainder of this holiday week, projects Tate Dwinnell of Self Investors. Remember, Tuesday is a shortened trading day too.

However, the Nasdaq, and the ETF PowerShares QQQ (QQQQ) that follows it, hit new recent highs this week. The Nasdaq was up 1.6% over the past two days, but the trading volume was about 11% below average. The QQQQ was up 1.5% this week, with the trading volume below average by about 30%. The other major indexes and ETFs echoed the same results:

Dow: Up 1.2%, with volume close to 14% below the average
Dow ETF (DIA): Up 1.2%, with volume near 37% below the average
S&P ETF (SPY): Up 1.4%, with volume about 24% below the average
Russell Small Cap ETF (IWM): Up 1.6%, with volume close to 28% below the average

Lower volume days are not necessarily bad unless there is a notable event that pushes the market in one direction or another. Lower volume affects liquidity, so selling may be exacerbated if negative news hit Wall Street during this time.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.