The following animated GIF chronicles the rise of the HFT Algo Machines from January 2007 through January 2012.
August 5th, 2011, was U.S. debt downgrade day.
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Notice how HFT activity surges when volatility is high, and HFT’s go bonkers when the market is falling, but they are much less active in periods when the market is rising. Therefore: How can anyone use volume to judge the price action in the market? By default, there will always be a high volume bias on days of decline because it is precisely on those days that the HFT machines are highly active.
Also notice how much activity there is from HFT’s right at the beginning half-hour of trading. Trying to manipulate the market? Or something else?