SPY: Watch the volume

Thing about volume is, the common idea of increasing volume to identify a strong trend is misleading. More often than not, the strong rallies take place during declining volumes. Usually what one should look for in volume, is a spike that is unusual relative to the timeframe and general cycle of the price movements, to signify a trend shift. On a down trend want to look for a capitulation with large volume to signify the end of decline or on an uptrend a huge blow off top with large volume or a sharp decline with large volume to signify a top. After such events, tapered down volume usually fuels the rest of the move. On a down trend move, it is common to see a volume rise on the downward direction. This happens because large money investors usually buy or sell with size near top or bottom, putting in the volume spike. After that, it's the little fish that do the reminder of work.
Right now, we are watching declining volume with price moving towards the previous highs. There are overhead resistance and also some psychologically magnetic price points up ahead. The indicators are showing strength. Stochastics headed above 90 usually like to remain there for a bit. RSI is moving into strong territory as well. Whatever bearish divergence that is building on the daily, will disappear if price can break above 458 region. MACD is also very strong.
So at this point I am going to watch the volume. I would expect some consolidations up ahead, maybe a little rise of the volume as some profit taking takes place. But, if I see a large spike in volume at any of the resistance areas, that would ring warning bells for me. Until then, staying long and staying strong.