Volume Analysis | Flash Market Update 2.27.23

Control was regained by the bears last week. Perhaps the most significant development was the S&P 500 breaking below major support. Formerly, we heavily discussed the S&P 500’s 4000 level as the major resistance level formed by the axis of the bearish wedge. Once broken to the upside, the 4000 level then reverted to support. On the back of more inflationary data, a successful attack was mounted by the bears last week, busting through the bull’s 4000 support stronghold.

Capital inflows trailed outflows $24.2 Billion to $41.5 Billion. Overall, weekly Capital Weighted Dollar Volume was light on the short four-day week. The Advance-Decline Line declined heavily on the week but remains slightly above trend. Both Capital Weighted Volume and Dollar Volume declined but Capital Weighted Dollar Volume remains close to testing resistance. The battleground price level to watch once again is the 4000 level.

Grace and peace my friends,

BUFF DORMEIER, CMT®

Updated: 2/27/23

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