The markets were down last week on light volume and capital flows. Our leading indicators, Capital Weighted Volume and Capital Weighted Dollar Volume, were also down, but only slightly. Weekly Capital Weighted Dollar Volume was below average in total and upside volume. Meanwhile, despite the drop in prices, Downside Capital Weighted Volume was only slightly above average. The shortened week could explain much of the light volume numbers, yet the daily volume totals were also below average for the week.

Although volume did not confirm the selloff, market breadth did. Both the Advance-Decline Line and the Number of Stocks @ 52 Week Highs retracted last week. Meanwhile, the SPX 500 is still trading inside the previous week’s range of 4448 and 4304. The short-term trend could be decided by the next move above or below this range. Overall, the volume data suggests that this is the pause in the rally we expected earlier prior to the 4400 breakout.

Grace and peace my friends,

BUFF DORMEIER, CMT®

Updated: 6/26/2023

Historical references do not assume that any prior market behavior will be duplicated.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