Volume Analysis | Flash Market Update – 2.26.24
It was a shortened week due to the President’s Day holiday, but capital volume flows exhibited strength. Last week, $37.6 billion flowed into S&P 500 stocks, while $27.8 billion flowed out. The Invesco QQQ ETF, which tracks the NASDAQ 100 Index, surged ahead with a 2.21% increase, demonstrating commanding leadership, while the iShares Russell 2000 ETF (IWM) saw a more modest uptick of 0.51%. Moreover, Capital-weighted volume experienced a notable surge after a brief stall the previous week, accompanied by an increase in Capital-weighted dollar volume, albeit to a lesser extent.
Despite the shining performance of the broad capital-weighted index, there was a slight pause in the broadening-out trend. Both the Advance-Decline Line and the Russell 2000 traded within the range of the previous week, and the number of stocks in the Russell 3000 posting new 52-week highs saw a slight decline.
In summary, last week’s analysis highlighted a shift in the market dynamics, with generals leading on strong upside capital flows and troops attempting to follow suit. However, this past week, the market appeared to revert to the posture exhibited in 2023, characterized by strong leadership from the generals (QQQ) fueled by volume and capital inflows.
Grace and peace my friends,
BUFF DORMEIER, CMT®
Updated: 2/26/2024.Historical references do not assume that any prior market behavior will be duplicated.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.
