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Volume is a vital component of technical analysis.  Prudent investors that incorporate volume into their stock analysis have often benefited several fold. Ideally, healthy stocks will more often tend to rise on higher volume and pullback on lighter volume.  Volume is a great proxy for institutional sponsorship.  Conversely, high volume declines can be ominous, as this usually signals distribution and further price deterioration are more likely to follow. 

Sykes Enterprises Inc (SYKE -$0.78 or -4.74% to $17.25) has fallen for three consecutive losses on above average volume, leading to 50 & 200 DMA violations, and pressuring it near prior chart lows. This high-ranked leader from the Commercial Services - Miscellaneous group initially made some upward progress after it was noted "while trading near the $21 level that has been a stubborn resistance level in recent years" when first featured on Monday, June 02, 2008 in the CANSLIM.net Mid Day Breakouts Report (read here). However, it fell back under its prior chart highs soon thereafter, and the volume totals spiked up to above average levels in late-June as it violated its 50 DMA line, triggering technical sell signals.  Based on weak technical action it was dropped from the Featured Stocks list on 6/27/08.  After it recovered to nearly challenge its 52-week high it was color coded yellow again with new pivot point and max buy levels noted in the 9/29/08 CANSLIM.net Mid-Day BreakOuts Report (read here). For its outlook to improve, SYKE would need to find support and promptly repair the violations of its short- and long-term moving average lines.  Otherwise, additional deterioration would raise more serious concerns and trigger more worrisome technical sell signals, prompting its removal from the Featured Stocks list once again.

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