| Whenever I talk to anyone about the stock market, | | | | volume action that occurs. After the market closes, |
| the question that come up most often after what | | | | check to see if the index closed higher or lower. |
| stock to buy is this. Should I buy shares now? The | | | | After that, review the volume for the day. Was it |
| first place you need to check after you have found | | | | higher or lower than the previous day? If it was |
| a stock you want to buy is to check the market | | | | lower than the previous day, then today's action |
| indexes to determine whether they are on the way | | | | doesn't really affect the trend. Volume higher than |
| up, on the way down or moving sideways. | | | | the day before is a different story. |
| When you do this, there are four indexes that you | | | | If the index closed higher on higher volume, then big |
| will want to focus on. They are: | | | | money is buying stocks and pushing prices higher. If |
| | | | the index closed lower on higher volume, then this is |
| 1. S&P 500 | | | | your clue that institutional money is selling stocks. |
| 2. NYSE Composite | | | | This could indicate weakness in the market if it |
| 3. Dow Jones Industrial Average | | | | occurs several times over a short period of time. By |
| 4. NASDAQ | | | | watching each index for this data, you'll eventually |
| You'll want to get in the habit of reviewing these | | | | develop a keen sense on what's going to happen and |
| indexes on a daily basis. When you do, there are | | | | instead of asking others whether the market is good |
| three things you'll want to pay attention to. The first | | | | to get into, you'll have your own opinion. |
| is the overall trend of the market. Is it going up or | | | | In fact, you should strive to do that in all of your |
| down or sideways? The second is the daily price and | | | | investing decisions. |