Volume Analysis | Flash Market Update — 1.2.24
Capital Weighted Volume and Dollar Volume were light on the shortened week. Despite a slight upward movement in the broader markets, both Capital Weighted Volume and Dollar Volume showed declines. The Volume Momentum Indicator (VMI), currently at 29, is approaching levels indicative of a potential washout, suggesting that the market may be overbought. While a robust bull market can push through overbought conditions, a moderate bull market often takes a pause, and a weak bull market typically undergoes a correction. The last instance of VMI reaching this level was on July 29th (VMI 28), highlighting that phase of the bull market as weak.
Wishing you a fantastic 24!
Grace and peace my friends,
BUFF DORMEIER, CMT®
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