All I heard yesterday was complaining about the volume of the rally. Almost the entire rally since the March 2009 low has come on low volume but suddenly everybody is a volume expert. I believe this speaks to the mood of market participants as they are very gloomy. I will be a lot more worried when everybody loves the “fabulous action”, which will likely occur at higher prices.
We are opening lower on declining European markets. While I believe EU officials have done enough to hold things together for now, I still am monitoring developments very closely over there. If another shoe drops in Europe than the negative sentiment will be meaningless. That said, after the sharp rally of the past week a pullback is not all that surprising and there is no need for alarm yet.