Volume Analysis | Flash Market Update - 1.3.23

CHIEF TECHNICAL ANALYST, BUFF DORMEIER, CMT

The S&P 500’s Ascending Triangle pointed out in last week’s commentary, broke out to the upside this past week creating a near-term S&P 500 target of 3950.  Additionally, the numbers of stocks making New Highs closed off their recent lows for the first time in a long while. The strongest mover was the Advance-Decline line which also broke connective weekly losses, closing significantly higher for the week.

Although the S&P 500 price index closed at 2023 highs, volume, the fuel of the market, continues to lag. Capital inflows just barely outpaced outflows, $38 Billion to $34 Billion. And despite Friday’s rally, Capital Weighted Volume closed the week again at 52-week plus lows. The Santa Clause Rally effect should start to dissipate next week but the bullish Presidential Cycle influence remains prominent. Intermediate term, the S&P 500 remains below the apex of the broken bare flag @ 4000, which also represents major resistance.

Buff Dormeier

R3KNH 01062023
AD SPX40W 1062023
ndr cw $ volume 01 19 2023
ndr cw volume 01 07 2023

Updated: 1/9/23

Historical references do not assume that any prior market behavior will be duplicated.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

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