Volume Analysis | Flash Market Update – 2.12.24

This past week, the S&P 500 continued its march higher amid moderate capital flows. Inflows surpassed outflows, with $53.4 billion in slightly above-average capital inflows compared to only $29 billion in outflows, which were below average. Both Capital Weighted Volume and Dollar Volume closed the week at new record highs, maintaining their bullish leadership over the price-based indexes. The lagging troops, represented by the IWM (the iShares Russell 2000 ETF), outperformed the generals, posting a 2.54% gain. The leading generals, represented by the NDX 100, advanced 1.77%, while the S&P 500 continued its streak of consecutive weekly gains, rising by 1.36%.

The troops (IWM) are still stuck range-bound between support at 160 and resistance at 202. Market breadth, as indicated by the NYSE Advance-Decline Line, began the week weak but recovered to close at its weekly high, though still lower than the previous week’s peak. Despite remaining above trend, market breadth appears to be in a consolidation pattern. To transition from a healthy market to a strong market, broader participation is needed. An upside breakout in either market breadth or the troops would signify the generals’ gaining full command of the bull market.

Now that the S&P 500 has breached the 5000 mark, support levels are identified at 4800 and 4700, with significant support resting at 4600.

Grace and peace my friends,

BUFF DORMEIER, CMT®

Updated: 2/12/2024.Historical references do not assume that any prior market behavior will be duplicated.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.