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Volume Analysis | Flash Market Update

Published on 12/26/2023

Source: Volume Analysis Flash Market Update, by Kingsview Investment Management

December 26, 2023

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Update

Capital-weighted dollar volume flows remained light for the week, with capital inflows totaling an average dollar volume of $40.5 billion, while capital outflows were relatively modest at $36.4 billion. Once again, both Capital Weighted Volume and Dollar Volume closed near all-time highs. The S&P 500 closed the week with a 0.75% gain, outpaced by the generals (NDX 100) with a 0.93% increase and the surging troops (IWM) which increased by 2.25%. Meanwhile, market breadth, as measured by the NYSE Advance-Decline Line, continues to support the price advance with a notable surge within the trading range.

The market’s expansion is evident, marked by the sudden participation in previously lagging sectors such as small-cap stocks. IWM closed the week at a resistance level (201) on above-average volume. From a technical standpoint, the battle of small caps at this resistance level is a key focal point. Despite a 24% increase since their November lows, small caps still significantly trail behind the S&P 500. A breakout above IWM 202 would bring the markets into a state of bullish harmony, but a temporary pause for consolidation may also prove beneficial in the long run.

Shared content and posted charts are intended to be used for informational and educational purposes only. CMT Association does not offer, and this information shall not be understood or construed as, financial advice or investment recommendations. The information provided is not a substitute for advice from an investment professional. CMT Association does not accept liability for any financial loss or damage our audience may incur.

About the Author | Buff Dormeier, CMT

As the Chief Technical Analyst at Kingsview Wealth Management, Buff Dormeier, CMT, helps RIAs and IARs grow and preserve their affluent and institutional client’s wealth. By combining comprehensive wealth management strategies with proprietary state-of-the-art analysis, he creates an income plan for life and a legacy for beyond. A private portfolio manager, Buff developes goal-based portfolio investment strategies tailored to the financial plan of the end client.

As a volume evangelist, Buff is a regularly featured speaker and enjoys sharing his research and investment theories. He literally wrote the book on volume analysis, authoring Investing With Volume Analysis, and was awarded 2012’s Technical Analyst Book of the Year / Trader Planet’s Top Book Resource 2011.

Buff also enjoys publishing his commentary and research. That information can be found via a weekly market commentary, a host of media partners, and various technical journals.