The explanation probably goes deeper than that. The most convincing argument is that individual investors have watched the initial public offerings and insider selling debacles at Facebook Inc. (NASDAQ: FB). These same people have witnessed what were considered premier IPOs, like Groupon Inc. (NASDAQ: GRPN), unravel. According to CNN:
What’s more, the unusually low volume comes as stocks trade near four-year highs, raising concern that the recent move higher lacks conviction, and it’s just a matter of time before markets are mired in a sell-off.
It is always just a matter of time before a sell-off. But, as the harsh economic news that is likely to come out for the balance of the year is released, volume will have nothing to do with it.
Douglas A. McIntyre