Money Flow Update for December 28th



As we can see from the top chart above, Cumulative Money Flow for the Dow Jones Industrials stocks remains in a downtrend, but has bounced off its lows during the past week. The four-day moving average of money flow has once again turned positive (bottom chart), which has been a fairly reliable short term sell signal of late. Sustaining positive money flows after a period of relative strength--suggesting that buying is attracting further buying interest--is one of the things I need to see to identify any possible change in the Dow's trend.

Money flow numbers are updated each morning before trading days via Twitter (free subscription); tomorrow AM, I will update other market indicators (which are also part of the daily Twitter posts).
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