CHIEF TECHNICAL ANALYST, BUFF DORMEIER, CMT^Ⓡ

The Generals (NDX 100) once again led the markets, surging 2.85% higher for the week. Unfortunately, the troops (IWM Russell 2000 ETF) retreated by -3.08%, closing near the minor support level of 168. In terms of capital flow, inflows exceeded outflows with $55.6 billion coming in compared to just under $27 billion going out. Consequently, more than twice as much money flowed into the S&P 500 than out, resulting in a 1.31% gain for the week.

Perhaps the most significant development this week was Capital Weighted Dollar Volume reaching a new all-time high. Although just inching slightly above, this achievement is noteworthy, especially considering that the S&P 500 is still below its June and July yearly highs and well off its all-time highs. From a market breadth perspective, the number of stocks making new 52-week highs increased. However, the NYSE Advance-Decline Line closed the week lower but remained engulfed within the range established the previous week.

In summary, the strong volume thrust previously noted on 11/6 propelled the Generals (NDX) to higher levels, although the troops still lost momentum. The S&P 500 now has minor support at 4300 and major support at 4200. To regain a bullish outlook, the troops (IWM) must maintain levels above 163 neutral levels and break above 200 to join in on the general’s party. A healthy market demands broader participation beyond just the major leaders, yet the new all-time highs in Capital Weighted Dollar Volume may be a positive sign.

Grace and peace my friends,

BUFF DORMEIER, CMT®

Updated: 11/13/2023

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