Volume Analysis | Flash Market Update – 12.26.23
Capital-weighted dollar volume flows remained light for the week, with capital inflows totaling an average dollar volume of $40.5 billion, while capital outflows were relatively modest at $36.4 billion. Once again, both Capital Weighted Volume and Dollar Volume closed near all-time highs. The S&P 500 closed the week with a 0.75% gain, outpaced by the generals (NDX 100) with a 0.93% increase and the surging troops (IWM) which increased by 2.25%. Meanwhile, market breadth, as measured by the NYSE Advance-Decline Line, continues to support the price advance with a notable surge within the trading range.
The market’s expansion is evident, marked by the sudden participation in previously lagging sectors such as small-cap stocks. IWM closed the week at a resistance level (201) on above-average volume. From a technical standpoint, the battle of small caps at this resistance level is a key focal point. Despite a 24% increase since their November lows, small caps still significantly trail behind the S&P 500. A breakout above IWM 202 would bring the markets into a state of bullish harmony, but a temporary pause for consolidation may also prove beneficial in the long run.
Grace and peace my friends,
BUFF DORMEIER, CMT®
Updated: 12/26/2023
Historical references do not assume that any prior market behavior will be duplicated.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.
