Pump up the volume

Market volume of the major equity indices – such as the S&P 500, the Nasdaq 100 and Dow Jones indexes – may run in an advancing or declining direction for any period of time; it is, however, when there is a volume surge after such a run – regardless of direction – that indicates the market is in a state of being either overbought or oversold.

To analyse these volume surges for their relative intensity, their distance from previous reversal points, and their duration, provides insight into the