Both the generals, the Invesco QQQ Trust (QQQ), and the troops, the iShares Russell 2000 ETF (IWM), made higher highs and lower lows before closing at new all-time weekly highs recently. Yet history reminds us that even the strongest advances carry the seeds of potential exhaustion, observes Buff Dormeier, chief technical analyst at Kingsview Partners.
Leading the charge, the troops (IWM) surged 1.9%, reclaiming the field after weeks of hesitation. The generals (QQQ) followed, advancing 1.1%, regaining leadership momentum even as they ceded relative strength to the smaller ranks.
This synchronized advance across nearly all ranks reflects a broadening offensive, where even the previously lagging divisions are beginning to rejoin the campaign. In recent weeks, the “fishhook” patterns in both capital flows and volume hinted that underlying support was quietly turning higher.
But volume, while improving, has not yet exceeded prior peaks. When price breaks to new highs ahead of volume, the message can be two-fold: enthusiasm remains, but conviction has not yet caught up.
Overall, the market presently stands beneath clear skies, but with storm clouds still visible on the horizon. The new hope is the breakout in capital flows and all-time highs across major indices. The gathering storm is the question of whether volume will continue to confirm or fade at resistance.
For disciplined investors, the course remains the same — advance tactically, protect your flanks, and keep your risk armor in place. A well-managed defense allows participation in the advance without exposure should the winds shift.
