This past week was short and light. The S&P 500 brought in $26.25 billion in inflows versus $28.25 billion in capital outflows. We begin the new year with very poor market internals. Breadth is week with the Advance-Decline Line falling and the % of stocks obtaining New Highs falling rapidly, nearing July / October lows. Meanwhile both Capital Weighted Volume and Capital Weighted Dollar Volume closed the year at 52-week plus lows.

Recently, the S&P 500 broke a bearish Wedge pattern and now is forming a smaller wedge / ascending triangle inside the former Bear Flag. The triangles resistance point is 3850. Seasonality is still positively influenced by the Christmas Rally and the Presidential cycle. Should SPX 3850 resistance be taken out by a daily close, look for further resistance at the SPX 3950 region.  Conversely, short term support resides at 3700.

Grace and peace to you my friends.

Buff Dormeier

Updated: 1/3/23

Historical references do not assume that any prior market behavior will be duplicated.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