October 23, 2023

Volume Analysis ‘Flash Market Update’ — 10.23.23

Backed by some of the heaviest downside Capital Weighted Dollar Volume we’ve seen this year, this past week the bears pushed the bulls closer to the key support level of SPX 4200. Capital Weighted Downside Volume saw a substantial outflow of over $61 billion for the week, dwarfing the inflow of just $21.6 billion. This marked the most significant weekly difference in favor of the bears in 2023, pushing Capital Weighted Volume back to levels last seen in the second quarter. Meanwhile, the Advance-Decline metric dropped below its March lows.

As mentioned last week, my attention is squarely focused on the performance of the troops, represented by the IWM Russell 2000 ETF. IWM closed the week lower at 166 but managed to hold just above the critical support level at 163. If the troops (IWM) breach this support, it could deal a severe blow to the bulls’ aspirations.

In summary, several key metrics are teetering on the edge of critical support levels: S&P 4200, IWM 163, and Capital-Weighted Volume 370. To salvage the situation, the markets need to rally here or risk sidelining the expected seasonal upswing.

Grace and peace my friends,


Updated: 10/23/2023

Historical references do not assume that any prior market behavior will be duplicated. Past performance does not indicate future results. This material has been prepared by Kingsview Wealth Management, LLC. It is not, and should not, be regarded as investment advice or as a recommendation regarding any particular security or course of action. Opinions expressed herein are current opinions as of the date appearing in this material only. All investments entail risks. There is no guarantee that investment strategies will achieve the desired results under all market conditions and each investor should evaluate their ability to invest for the long term. Investment advisory services offered through Kingsview Wealth Management, LLC (“KWM”), an SEC Registered Investment Adviser. 

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