Not exactly news NEWS, but thats one explanation that makes...

Not exactly news NEWS, but thats one explanation that makes sense. I think what we are talking about here is how this volume can determine the duration of the time/price cycles. On more volume, patterns and cycles move quicker - doesn't matter if they are smart or not.

Throw into your mix 4 kinds of players; institutions/funds, banks (financiers), commercials and private

Not all companies take an investment view of their own stock price internally as being to sell high and buy low - to them, it is what it is (the directors usually care if it drops (;o) ). Most institutions are triggered into selling on a drop in price, and would be similarly triggered on buying based on some setup. Index member stocks are regular purchases for institutions, at the going price.

So the volatility is the resultant of who thinks what it's worth. The fact remains, at virtually any price, there are enough buyers (if high) and sellers (if low) to maintain an elevated volume.

As for the indice volumes, not all stocks within those indices are running high/low similtaneuously. Buying and selling happens at a great rate of knots.

Even if everyone thought the stock market was going to crash to 1000 tomorrow, you'd have 3 months to exit well above this. They're not all as quick thinking as you.

rgds,
pw