Volume Analysis | Flash Market Update – 5.13.24

This past week, the broad markets embarked on a path towards new all-time highs, albeit on below-average volume. Capital flows saw $39 billion entering the market compared to $29.6 billion exiting, both figures falling short of recent averages. Leading the charge was the S&P 500, climbing 1.85% for the week, closely followed by the NDX 100 (up 1.51%) and the troops represented by the iShares Russell 2000 ETF, IWM, (up 1.19%). Notably, the S&P 500 breached resistance at 5190, closing at 5222, setting its sights on the next significant resistance hurdle – all-time highs of 5265. Additionally, the NYSE Advance-Decline index surged to new all-time highs, signaling a potentially even more bullish sentiment than the breakthrough of doji resistance. While the troops (IWM) still have a great distance to cover to near all-time highs, they face corresponding resistance around the 212 range. Overall, the broad market continues its upward trajectory fueled by robust energy (volume) and resilient capital flows.

Grace and peace my friends,

BUFF DORMEIER, CMT®