Money flow has bottomed on the hourly chart. I would expect some support here for the very, very near term. All short term indicators are oversold.
As for the daily chart of the Dow the money flow has turned down and is heading lower. I would expected weakness in price until the money flow (blue line) indicator has cycled back to the bottom. Today we had an 85% down volume day for the NYSE and we did not see a major outflow of cash for the broader market. However, we did see almost $700 million of buying on weakness for SPY. Just a note of warning ... the commercials may have other intentions for this market.
The dollar was up today ... the reason for the weakness in equities.
Just a note on the Baltic Dry Index ... it is down and has been moving down since June. A possible reason is the lack of imports/exports to and from China. One would think that if there is ample freight capacity on the open seas ... there is not to much commerce being transacted and without commerce being transacted ... money is not being made. A downturn in this index has mirrored a corresponding downturn in equities.
Money flow has bottomed on the hourly chart. I would expect some support here for the very, very near term. All short term indicators are oversold.
As for the daily chart of the Dow the money flow has turned down and is heading lower. I would expected weakness in price until the money flow (blue line) indicator has cycled back to the bottom. Today we had an 85% down volume day for the NYSE and we did not see a major outflow of cash for the broader market. However, we did see almost $700 million of buying on weakness for SPY. Just a note of warning ... the commercials may have other intentions for this market.
The dollar was up today ... the reason for the weakness in equities.
Just a note on the Baltic Dry Index ... it is down and has been moving down since June. A possible reason is the lack of imports/exports to and from China. One would think that if there is ample freight capacity on the open seas ... there is not to much commerce being transacted and without commerce being transacted ... money is not being made. A downturn in this index has mirrored a corresponding downturn in equities.
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