The chart shows the ratio VVOLDQ / VXN

VOLDQ is a measure of NASDAQ breadth in terms of volume. Its the difference between NASDAQ's up and down volume.

VXN is the volatility index for the NASDAQ.

Bearish case: The ratio is very extended and that historically coincides with significant reversals.

Bullish case: If available liquidity is on a tear VOLQ could reach new heights. And if liquidity were to rise even more in the future then VOLDQ has more room to rise. Asset prices tend to rise with liquidity, a byproduct of monetary debasement and quantitative easing (aka Brrrrrrrrrrr)



Fundamental AnalysisTechnical Indicators

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