Abstract
Further evidence is provided on the nature of the relationship between speculative trading volume and trends in cash prices. The speculative volume-cash price relationships are reexamined by adding to the basic frameworks a trader makeup/market direction indicator provided by the put-call ratio. The results from the examination of the OEX Index indicate that, while implementing the existing models with the market direction indicator provides some improvements in the models' abilities to explain market direction, it does not represent a significant improvement for the existing models' ability to explain price variability. These are grounds to support the validity of the common assumption in volume-price variability models that volume-priced variability relationships are indistinguishable across good and bad news.