Tuesday, October 6, 2009

Stock Market Update - October 6, 2009

Money flow (blue line) has turned down on the hourly charts for the Dow. This does not mean that price will follow if the primary trend is up (green line) ... it can move sideways.

Money flow is moving up from its cycle low. The one item we need to watch is what is the primary trend going to do ... is it going to move down once the money flow has topped or is it going to move back up when money flow tops? Only time will tell over the next few days. Today we did see money inflow on the broader market with a 79% up volume day on the NYSE. Gold made a new high from the March high of 2008 and the dollar moved down. If this keeps up inflation is around the corner.

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