X discussionSPY just printed its lowest weekly trading volume since December 2004, with August on pace for the thinnest monthly print since September 2004. Traders care because the S&P sits near highs on a near-empty tape right as historically weak September seasonality begins.
BullThe volume drought is late-summer vacation behavior, not a top. Billions in positive SPY gamma stacked through 780 keep dealers damping swings and supporting a grind higher into thin liquidity.
BearSPY is partying near highs with the room empty, so upside rests on fragile participation. Last week's decline carried more volume than this week's green candle, and a few flows now move outsized capital.
Posts
Bull evidence
@CheddarFlowBillions of positive SPY gamma are stacked all the way to 780.
Bear evidence
@RodolpheSteffanS&P is near highs with an empty room; thin volume means a few flows can move a lot of capital.
@VCPScannerThe market is stalling and setting up for a short-term correction.
@BarchartSPY is entering September, its only month with a negative average return since 2010.
Context
@BarchartSPY just traded its lowest weekly volume since December 2004.
@Mr_DerivativesWithout ~76.5M shares Monday, August closes as SPY's lowest monthly volume since September 2004.