Volume Analysis | Flash Update – 12.9.24

After several weeks of allowing the reserves to lead, the generals resumed control this past week. The Invesco QQQ Trust (QQQ) advanced 3.16%, rallying up the SPDR S&P 500 ETF (SPY) to close up 0.80%. Although our high-ranking officers led a valiant charge, the lower echelons retreated. The infantry troops, represented by the iShares Russell 2000 ETF (IWM), fell back -1.23%, with the Invesco S&P 500 Equal Weight ETF (RSP) losing ground at -1.18%. Our brass commander, the Schwab US Dividend Equity ETF (SCHD), posted the most significant tactical withdrawal, down -2.27%.

Intelligence reports on CW Weighted Volume indicated relatively weak engagement, with total shares traded just slightly outpacing the previous week’s shortened Thanksgiving week maneuvers. A few positive reconnaissance notes on the volume front: Capital Weighted upside volume, although not strong, maintained average levels for the week, while downside activity was light. Meanwhile, the battle line, measured by the NYSE Advance Decline Line, confirmed the broader market’s tactical retreat with a moderate decline of its own.

Overall, the S&P 500 maintains its position above the strategic trendline, and both the Russell 2000 and NYSE Advance Decline Line hold their ground above near-term defensive support positions. However, the velocity of capital flows is weakening relative to the forward march of price. As we approach year end, the positioning of the markets may reveal important themes going into the New Year.

Grace and peace my friends,

BUFF DORMEIER, CMT

Updated: 12/9/2024. Historical references do not assume that any prior market behavior will be duplicated.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.