Although the markets experienced a volatile Independence Day downside week, the technical damage appeared to be only modest at worst, explains Buff Dormeier of Kingsview Partners.
The S&P 500 (SPX) is still trading inside its previous week’s range of 4458 and 4328. The week was shortened by a light half session Monday and closed on Tuesday. The action was violent on the days the market was open, but few investors participated, as evidenced by the light volume.
Both Capital Weighted Volume and Capital Weighted Dollar Volume were down for the week but only slightly. Although down, even the struggling Advance-Decline Line remained above resistance. Overall, prices traded wildly down last week. However, volume did not confirm the sell-off. The market remains in the same trading range as before Independence Day, with 4458 resistance and 4328 support. A move above or below this range could impact short-term implications. Yet the intermediate health of the market appears to remain healthy.
Learn more about Buff Dormeier here.
