I've noticed on the SPX Monthly chart, that the volume has been ascending all the way to the 2007 financial crisis correction and after that, the stock market made a new high until recently on a descending volume . I don't know what this exactly means or does it mean something at all but I will appreaciate any comments and thoughts on this. Thanks. SP:SPX
Like all impulse waves, at the simplest level it must be a mean reversion of volume and/or volatility. It would be interesting to see this graph in the 1920s leading up to and after the 1929 crash when buy backs were a factor.
Assuming the volume here is simply "entry/exit" volume, it could be an indicator of complacency or perhaps the entry of algos to the market. Purely speculating here.