Over the last few weeks, we have seen the volume on the NYSE come in at very low levels. Last week’s volume was the lowest weekly volume for a full five-day trading week for 2011.

This is to be expected around the holidays, but what is more surprising is the trend in the annual volume numbers.

Since the bear market from late 2007 to early 2009, the annual volume has been in decline. The Big Board experienced a 6.8 percent decline in volume from 2008 to 2009.

Then from 2009 to 2010, the annual volume declined by 19 percent. Using the actual numbers for the first 11 months of the year and an estimate for December, the volume for 2011 is on pace to drop another 12 percent from 2010’s level.

What this suggests is that the average investor has lowered their stock holdings since the bear market. Given that this was the second bear market in 10 years, you really can’t blame them.

If we are going to see a significant bull market in the coming years, the volume on the NYSE is going to have to reverse this trend.