U.S. Stocks Rally May Fade as Trading Drops: Technical Analysis
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U.S. stocks may retreat from the Standard & Poor’s 500 Index’s steepest weekly advance since July because too few shares are being traded, according to analysts from Bank of America Corp. and MKM Partners.
An average 8.28 billion shares changed hands each day last week as the S&P 500 jumped 4.5 percent, the most since July. That’s the smallest number of shares traded daily since the week ended July 4 and 12 percent less than the 9.37 billion session average in the previous three months, showing that the rally may stall because it lacks buyers, according to Bank of America’s Mary Ann Bartels.