Volume Analysis | Flash Update – 11.11.24
The troops, iShares Russell 2000 ETF (IWM), launched a massive offensive in an election fury last week, leading all markets in a decisive charge, advancing 8.72%. With relentless determination, they breached their 229 resistance stronghold and are now closing in on their all-time high fortifications near 245, established in November of 2021. The generals, Invesco Nasdaq 100 (QQQ), followed suit with a 5.46% advance, while the brass commanders performed admirably but lagged behind both their officers and foot soldiers. The SPDR S&P 500 ETF (SPY) rallied 4.72%, the Invesco S&P 500 Equal Weight ETF (RSP) gained 4.46%, and the Schwab US Dividend Equity ETF (SCHD) marched forward 3.67%. Last week’s market maneuvers may hold strategic significance, as the battlefield’s immediate reaction to major events may reveal how investors perceive new opportunities and risks on the horizon.
Market intelligence reports also demonstrated robust enthusiasm coinciding with the election results. The S&P 500 Capital Weighted Dollar Volume emerged as the strongest internal performer, its upward momentum mirroring its price counterpart. However, while both Capital Weighted Volume and the NYSE Advance-Decline Line made solid advances, they trailed behind price’s explosive movements. Both S&P 500 Capital Weighted Dollar Volume and Volume reinforced their all-time high positions, but the Advance-Decline Line still lags behind its October 18th peak.
Thursday’s follow-up assault registered as a 10% Upside Volume Day, with 94% of the day’s S&P 500 volume advancing. However, Wednesday’s price movement barely cleared the 80% threshold, showing relatively weaker firepower considering the S&P 500’s 2.5% gain. Additionally, the S&P 500 Capital Weighted Volume reported a 60% downside day on Friday the 8th, despite the S&P 500 finishing up 0.4%, suggesting capital flows were retreating amid the overall advance.
In conclusion, all signals on the US equity battlefield shine brightly green. Internal intelligence strongly confirms these bullish price trends. However, beneath the surface, internal contrasts may suggest that while the market’s health remains strong, it may be exhibiting mild signs of battle fatigue and potential vulnerabilities in its defenses.
Grace and peace my friends,
BUFF DORMEIER, CMT
Updated: 11/11/2024. Historical references do not assume that any prior market behavior will be duplicated.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.
