CHIEF TECHNICAL ANALYST, BUFF DORMEIER, CMT^Ⓡ

Capital flows were light as expected during the short week. However, despite the abbreviated four-day trading period, downside Capital Weighted Dollar Volume (capital outflows) exceeded the average, pointing to significant selling pressure. Although the Volume Momentum Indicator has rebounded off its lows, it still suggests the S&P 500 may reside in overbought territory.  Meanwhile, IWM (the iShares Russell 2000 ETF) has once again fallen below 200 resistance. Looking ahead, the next key support levels for the S&P 500 are at 4635 and 4600.

Grace and peace my friends,

BUFF DORMEIER, CMT®

Updated: 1/8/2024

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