Tom McClellan - Low QQQ Volume a Sign of a Top (February 09, 2017)

When investors get complacent, they do certain things. They show up as bullish in the various surveys. They bid tiny premiums on options, driving down the VIX. They put all of their cash to work, letting money market fund levels get down really low. And they trade tiny volumes on QQQ.

This week’s chart looks at a 10-day simple moving average in the daily trading volume of QQQ, the largest of the ETFs which tracks the Nasdaq 100 Index. Low readings like this are associated with investor complacency, and thus with important price tops