September 5, 2023

Volume Analysis ‘Flash Market Update’ – 9.5.23

After a period of anticipated seasonal decline, both the generals, represented by the NDX 100, and the broader market’s troops, symbolized by the Russell 2000, regained their former momentum this past week. The Nasdaq 100’s generals demonstrated robust performance, concluding the week with a 3.67% gain, while the Russell 2000 troops also posted a significant increase of 3.72%. Furthermore, the S&P 500 recorded a solid 2.50% uptick, and the Dow Jones Industrial Average exhibited a more modest yet positive movement, closing the week with a 1.43% increase.

Notably, the S&P 500 successfully broke through its “outside bar” resistance level of 4490, to close at 4516. Despite the strength displayed in market breadth throughout the week in the Advance-Decline Line,  it did not prove sufficient enough to breach its corresponding resistance. However, the NYSE AD Line continues to remain in an uptrend. Capital Weighted Volume also exhibited strength, nearing its yearly highs.

Of particular significance, S&P 500 Capital Weighted Dollar Volume is bullishly leading the price action closing at yearly highs. In contrast, the S&P 500 price index remains 85 points below its yearly highs. Over the course of the week, Upside Capital Weighted Dollar Volume attracted substantial inflows, totaling over $62.5 billion, while S&P 500 downside Capital Weighted Dollar Volume outflows amounted to a relatively modest $16.6 billion, well below the historical average.

As we look ahead to the coming week, S&P 500 resistance is currently situated at 4600, while short-term support can be identified at the former resistance level of 4490. Should Capital Weighted Dollar Volume succeed in reaching new yearly highs, it would indicate the potential for the S&P 500 price index to follow suit, presenting opportunities for further gains in the market.

Grace and peace my friends,


Updated: 9/5/2023

Historical references do not assume that any prior market behavior will be duplicated.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