Monday April 13, 2009

Here is a chart of the NYSE Advance/Decline Ratio. As one can see it looks to be topping based history and on the Frye Indicator for both Tick (black) and the A/D Ratio (green) ... the S&P 500 is the blue line.

What a move at the end today for the Dow ... who would have thought that the session would have ended down. If you look at the Tick data on the 5 minute chart it was showing the rally that began in the morning was exhausted about 40 minutes before the close.

The inflow today was very large for the QQQQ's ... about $520 million for the day. Total inflow for the US Market today was $1.2 billion. Month to date the US Market has an inflow of cash of $34.2 billion. (All the preceding information was published by the Wall Street Journal)

So far big money is still pouring in ... we may have a down day or two ... but based on the QQQQ's there looks to be an appetite for stocks by the large money managers. The Financial sector has had the largest % gain in terms of money inflow month to date when compared to all sectors. I would be very cautious if we see money being pulled out ... this would most likely give us a near term cycle top in the market.