May 30, 2023

Volume Analysis | Flash Market Update 5.30.23

The Generals (Nasdaq 100) continue to charge higher, advancing through formerly bearish territory. However, the troops (Russell 2000) are still in retreat. With the NDX 100 making up a preponderance of the equity weighting within the S&P 500, it is not surprising to see both Capital Weighted Volume and Capital Weighted Dollar Volume surging higher. Specifically, $54 Billion flowed into the S&P 500 and $39 Billion flowed out.

Despite the surge in the NDX price index up 3.25%, the SPX price index only finished up 0.28%, the Dow Jones Industrials closed down -0.65% and the troops (Russell 2000) closed down -1.18% for the week. Also, the number of stocks making new highs in the Russell 3000 fell again this past week. Moreover, the NYSE Advance-Decline Line dropped further below its trend line.

The resolution in a bifurcated market with the generals (NDX 100) advancing higher on positive capital flows with the troops declining lower has typically been for the generals to “rally up” or pull up the rest of the broad market not receiving capital flows. However, the market is providing many mixed signals, and this could go either way. On a positive note, the S&P 500 just broke through and closed above the 4200 resistance mark. Yet, the next resistance is close at hand @ 4225. A close above 4225 would solidify the 4200 breakout.

Grace and peace my friends,


Updated: 5/30/2023

Historical references do not assume that any prior market behavior will be duplicated.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. 

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