Volume Analysis | Flash Market Update — 7.5.23
This past week the S&P 500 broke above our upward trading range of 4448 to close at 4456. Upside capital inflows were above average with 56 Billion dollars flowing into S&P 500 components last week. Capital outflows were light with less than $32 Billion flowing out of the S&P 500. Overall, the trend of capital flows closed the quarter @ $742B continuing its upward trend and closing in on its all-time high reached December 10, 2021 of $756B. Both Capital Weighted Dollar Volume and Capital Weighted Volume continue to advance, nearing their all-time highs.
Market-Breadth joined the rally with the Russell 3000 Advance-Decline Line breaking into an uptrend and Russell 3000 New-Highs closing the quarter at the top of its range. Market breadth improvement supports our prior thesis that the generals (NDX 100) are rallying up the troops (Russell 2000). Overall, volume continues to lead prices higher, a bullish condition. Support on the S&P 500 resides @ 4300 and resistance rests @ 4640.
Grace and peace my friends,
BUFF DORMEIER, CMT®
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