Volumes can give away a lot about the company, so keep an eye on volumes. Do you see volumes building up in the market you should focus on this more if the volume build up is predominantly delivery volumes. Trading volumes do not give you much of a picture. Ideally, if you are taking an overall view on the market, ensure that the volume trends on the front line stocks that have a high weightage in the index are seeing a positive build up. For those of you who understand technical charts, also check out technical supports and breakouts on the charts. In technical analysis you can use supports and resistances for two reasons. Firstly, if the index and the key stocks show the tendency to take support around the support levels and bounce back consistently it could indicate that the markets could be turning around. That is a signal that you should buy into the market aggressively. This applies to the index and to the index stocks. Specifically you must watch out for breakouts. Look out if the price chart and the moving average charts are breaking of a stiff resistance rapidly and with volumes. On the other hand if you find that the stocks are weakening and breaking below the support line then you need to be doubly cautious.