an tSionna: Where Has All The Volume Gone

The question asked above refers to the divergence in volume from price. Usually the divergence between rising prices and declining equity volume is considered a negative for future price action. I'm not so sure any more. I can't prove this but my instincts are telling me that ETFs are soaking up most of investors' equity today. It seems to me that with over 700 ETFs that its possible investors prefer their diversification to the single stock risk of individual stocks. The more money that goes into these is less money available to purchase stock.

Not the only possibility out there. But it is one to consider.

*Long ETFs related to the S&P 500 in client and personal accounts.

Link: http://pragcap.com/chart-of-the-day-where-is-the-volume