Summary: A midweek rebound allayed some fears of a further drawdown but volume is a concern.
VTI Daily
Investors cheered a sharp rebound today after a week of worrisome action.
The daily VTI chart – the broadest index available and very useful for assessing market conditions – shows the rebound from Tuesday’s low very clearly.
Daily action has not yet moved the 3 dma above the 8 dma so prudent investors and traders should probably wait for that to occur before taking on new positions.
The volume on up days is still dismal. Even on today’s sharp reversal up the volume dropped.
The weekly chart is relatively more bullish. However, the 3-week moving average is looking a little top-heavy so more drawdowns might be in store in the short term.