In the Volume Analysis flash update two weeks ago we stated, “the bulls would then need to advance the ball past SPX 3900 to breakout of bearish territory. A move to 4200 would give the bulls not only control of the ball but momentum to test further levels.” Friday, the S&P 500 closed at 3901 resistance placing control squarely squeezed between the midfields.

Although price appears to be garnering momentum, volume and capital flows continue to drag behind. Perhaps it is because the markets generals, the large technology companies, continue their declines despite a broad market rally. On a bright note, the Advance-Decline Line finally began an upward move this past week. Although the AD Line and volume are moving higher, a healthy bull market should see these leading indicators leading the market higher ahead of price. Risk management is often the path less taken but the steady course leading towards successful long-term financial outcomes.

Grace and peace to you my friends,
Buff Dormeier

Updated: 10/31/2022

Historical references do not assume that any prior market behavior will be duplicated.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