r/wallstreetbets
Broken Market
Author spots massive vertical expansion in NYSE advancing volume, suggesting market breadth volatility squeeze is resolving. To the moon?
- Advancing volume has suddenly ripped away from declining volume after years of compression, indicating strong buying pressure.
- The chart shows a volatility squeeze on market breadth finally resolving to the upside, signaling a potential broad rally.
- The sudden impulse could be a short-term climax or trap rather than a sustainable trend change.
- The long-term history of the indicator shows sideways chopping with a bearish bias, risking a mean-reversion pullback.
https://preview.redd.it/ql65pgyeyq9h1.png?width=1422&format=png&auto=webp&s=594daf5aea5bd25f7c71af11a1fbb57272ad9163
I’ve been staring at this NYSE UVOL minus DVOL (3M) chart and I can’t tell if this is quiet accumulation or just one of the cleanest “nothing matters until it suddenly does” setups I’ve seen in a while.
For years this thing basically chops sideways in a tight band — no real directional conviction, just constant mean-reversion between advancing and declining volume. Looks like pure noise with a slight bearish bias at times.
Then at the far right… you get that vertical expansion. Just a sudden impulse where advancing volume absolutely rips away from declining volume after years of compression.
If you zoom out, it almost looks like a volatility squeeze on market breadth itself finally resolving.
To the moon?