August 29, 2022

Volume Analysis | Flash Market Update – 8.26.22


In review, two weeks ago 8/15 we noted capital weighted volume was meeting critical resistance and the outcome of this battleline could determine the near and intermediate state of the market by stating “Capital Weighted Volume is also on the cusp of breaking resistance….Overall, price and volume are at crucial inflection points. Their outcomes, whether to breakthrough or retrace, could be viewed as telling for the current health and future direction of the markets both near and intermediate term.”

Last week 8/22 we noted the outcome of that crucial pivot point saying, “Capital Weighted Volume, which was on the cusp of breaking into bullish territory, hit resistance and sold-off.”

This past week the follow through accelerated in a big way as the market continued its bounce off resistance. Downside Capital Weighted Dollar Volume was heavy, particularly on Friday. As a result, short-term Capital Weighted Dollar Volume has now broken below trend, once again joining the intermediate term trend of capital flows downwards. Next support on the S&P 500 is 4000 and then 3900. Correspondingly, Capital Weighted S&P 500 Volume support is 339 and 331.

We will closely monitor these levels as these indicators may once again provide foresight into the health and state of the equity markets.

Grace and peace my friends,


Chief Technical Analyst | Kingsview Partners

Updated: 8/26/2022

Historical references do not assume that any prior market behavior will be duplicated.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