Monday, May 4, 2009

Stock Market Update - May 4, 2009

I have posted a daily chart of the S&P 500. Can you say wow! Today was different to say the least. The markets were up ... but money flow is telling something different. I still think we could see higher prices to come. Volume was modest to make it a decent follow through day. The DJ US Total Market had a net outflow on price strength for the day of $462 million ... all of it was related to Financial sector that scored a net outflow on buying strength of over $811 million. Only two other sectors were slightly down O&G and Telecommunications ... all others were up in money flow. However, money inflow did occur on a number of ETF index stocks ... QID which is the inverse for the NASDAQ index had a net inflow of cash today of $15 mm. We also had a 94.8% volume up day on the NYSE.
Here is a chart of the 60 minute Dow. Everything for the short term looks to be overbought ... but remember it can stay that way for a while. Before one enters I would wait for the Tick data line (red) and the bottom two indicators to cycle back down to the bottom at least before I would think about a purchase if you already haven't done so.

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