There continues to be a lack of volume on the S&P 500’s downtrend, says Terence Brogan, Co-Head Market Technician at Brogan Group Equity Research.

While the S&P 500 index reached a new low recently, volume diverged and made a higher low (see Chart). Brogan makes the point that, “if this was a really scary period (like it sounds on CNBC) then everyone would be running for the door.” He says people may be running for the door, but there are just not a lot of people running. This tells him that, “the market is getting very close to an inflection point of a sold-out bottom where there are no more sellers and everyone who was going to sell, sold.”

See Chart.