Stock Market Update - May 6, 2009

Money flow is still pointed up (Blue line on the top chart). Something I had pointed out about two or three updates ago. I think we still have a ways to go based on this (market going up that is). All money was flowing into Financial sector today ... $1.2 billion of the $1.5 billion plus that flowed into the market (The Wall Street Journal). Also, the volume was up in price 75% of the time today. Let's wait and see what happens when the report is released on Thursday.

The modified tick data line and the short term indicators on the above chart have been about 100% correct over the last few days. See the last three blogs or so ... last night we called it just about perfect based on the above indicators. Now I must admit ... what is going to happen on Thursday is going to be hard to call. Folks have been buying rumor ... now they may sell the fact once the news is released ... or they could really buy BIG on what seems to be favorable news on the banks that were faced with the stress tests. We will just have to wait and see ....