Just a quick update on the Price/Volume Diffusion Index. Starting with the positive, the slope of the rolling summation index has fully turned from recent lows, albeit still down from the highs late last year. This most fully reflects the upturn in equities prices since the beginning of November last year, which has translated into a high summation index over that time. The most recent track of the slope of summation index is shown below.
Additionally, the diffusion index remains well above the 50 demarcation that signifies an expansion in price, currently at 68.3. That said, the diffusion index appears to be flatlining at this level, as the summation index, the raw data input into the diffusion index, has fallen a few points the high in the last two weeks. This is presented in the charts below.
Price/Volume Diffusion Index
Rolling Summation Index
Downside volume has been picking in recent trading sessions. This is the S&P 500 pushes into the November and December 2007 downdrafts. I would say this setup would suggest caution, but that the bias remains to the upside at the moment.
Additionally, the diffusion index remains well above the 50 demarcation that signifies an expansion in price, currently at 68.3. That said, the diffusion index appears to be flatlining at this level, as the summation index, the raw data input into the diffusion index, has fallen a few points the high in the last two weeks. This is presented in the charts below.
Price/Volume Diffusion Index
Rolling Summation Index
Downside volume has been picking in recent trading sessions. This is the S&P 500 pushes into the November and December 2007 downdrafts. I would say this setup would suggest caution, but that the bias remains to the upside at the moment.
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