Louise Yamada, managing director at Technical Research Advisors, told CNBC’s “Closing Bell” that the market needs more volume to consistently push the Dow Jones Industrial Average higher.
“From a purely price perspective, we think the Dow could continue to climb, because it did break out from an interesting six-year continuation pattern back it October,” Yamada said Friday. “It’s taken it about six months to get this far, but 13,000 was our first target.”
The market stumbled in February, but she said technical indicators continue to improve with the exception of volume.
“Volume is a weapon of the bull,” she said. “If it doesn’t come in, we could see consolidation or a pullback. Under the surface, there’s been a lot of rotational behavior within sectors and even the Dow components.”