Volume Analysis | Flash Market Update – 9.12.22

WRITTEN BY: CHIEF TECHNICAL ANALYST, BUFF DORMEIER, CMT^Ⓡ

The S&P 500 rallied last week breaking through our first level of resistance @ 4000 to close @ 4067. Next resistance is near @ 4080 with additional resistance residing @ 4180.

Although price action was strong,  volume and capital flows, though positive, were not as vigorous. This lack of volume suggests that the bull market rally lacks conviction and could be a relief rally rather than a birth of a new bull trend.

Should the rally continue, we will be watching the next resistance levels (4080,4180) investigating whether conviction is reentering the market.