January 9, 2021, 10:28 am EST
Where is the Volume ?
Higher volume means higher momentum. When you go shopping and you see a lot of crowds there, you know there must be something exciting, either hot products or activities. Same principle applies to technical analysis on stock markets. New record high should come with higher volume in normal conditions. Be careful if this is not the case.
Yesterday (01/08), all indexes made another record high but volume is at a relatively low level. This is the time to be cautious not to be excited. Tesla (TSLA) was +8% that seemed bullish because it doubled the price from 400 to 880 in less than two months. However, there are not too many stocks performed like TSLA.
Although there is no way to know exactly when will be the day for the final top, it is important to watch both price and volume patterns together. Currently, volume patterns do not match bullish actions on price. Thus, be careful.