The Price/Volume Diffusion Index (PVDI) I track is rolling over. This is as volume on the upside is weakening while downside volume picks up. The latest PVDI is 61.25, down more than 6 points from the month ago reading of 67.5 and nearly 13 points lower than the 74.2 demarcation three months ago. This leads me to conclude that demand continues to wane as stocks prices turn ever higher. That said, demarcations over 50 tend to, on a historical basis, suggest higher future prices. This leads me to conclude that although the rally in equities is weakening, that the bias remains to the upside.
The following is the latest updated chart for the PVDI
Additionally, the rolling summation index continues to track higher. This is a confirmation that the market's bias remains to the upside.
The following is the latest updated chart for the PVDI
Additionally, the rolling summation index continues to track higher. This is a confirmation that the market's bias remains to the upside.
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