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Weekly Comic: Low summer volumes save the bulls for now, but storm brews on the horizon

Published 24/08/2017, 11:01 pm
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Investing.com - U.S. stocks traded at their lowest volume of the year this week, with total composite volume totaling around five billion shares on Wednesday, according to Dow Jones data. The average daily volume for August is 5.98 billion shares, and for the year it's 6.54 billion shares.

Volume on the Nasdaq was at its second lightest of the year at 1.51 billion shares, well below the August average of 1.82 billion shares and the year-to-date average of 1.89 billion shares.

New York Stock Exchange volume was also well below averages at 2.76 billion shares, close to its low of the year of 2.71 billion shares set on July 14.

This year's impressive rally on Wall Street is finally showing signs of cracking as the long summer nears its end.

With September on the doorstep, investors are likely to be nervous that recent cracks will turn into a steeper selloff. September ranks as the worst month for stocks, according to the Stock Trader's Almanac, producing an average price return for the S&P 500 of negative 0.5%.

The market is up more than 8% so far in 2017, boosted by expectations that the Trump administration’s policies will spur growth.

However, recent turmoil surrounding the president intensified doubts that he would be able to follow through on his campaign promises for tax cuts, deregulation and fiscal stimulus.

So far the bulls have showed strength, with investors buying any significant dip, but the bears might be planning something for them in the next few weeks.

To see more of Investing.com’s weekly comics, visit: http://www.investing.com/analysis/comics

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