With the smoke of geopolitical tension lingering on the horizon, the markets just took a measured pause from their recent bullish campaign. But “generals” like the Invesco QQQ Trust (QQQ) remain steadfast and disciplined, still within reach of their all-time highs. Their posture suggests no surrender, only a patient, calculated advance, notes Buff Dormeier, chief technical analyst at Kingsview Partners.
Despite last week’s market lull, volume flows beneath the surface painted a more nuanced picture. Overall volume was slightly below average, yet the complexion was constructive. Downside volume and capital outflows were muted, while upside volume held steady and capital inflows came in above average. Beneath the battlefield, the NYSE advance-decline line pushed higher, a signal that the underlying infantry of stocks is still mobilizing forward.
Invesco QQQ Trust (QQQ)
Looking ahead, key battlegrounds are emerging. For the S&P 500 Index (^SPX), psychological resistance levels remain at 6,000 and 6,050, while the next line of minor support sits at 5,785.
For the “troops” – the iShares Russell 2000 ETF (IWM) – momentum must be recaptured by reclaiming the $212 hill, with a neutral zone marked down at $190. Any failure to hold that line could shift their posture back to defensive.
Bottom line? Though the market took a tactical breather, strength beneath the surface seemingly endures. Volume and capital flows continue to chart higher ground, acting as silent forward scouts for price action. Should this regroup hold, the offensive may soon resume. But as always, in this campaign, every battalion has its part to play.
