Look to Money Flows for Market Direction (by Duuude)

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Money Flows rule the stock market today.  You may recall the post I made on April 27 about how money the Fed was printing found its way into various asset classes.  It seems that neither fundamental analysis or technical analysis really matter any more.  It is all about tracking where the money is flowing.  The Wall Street Journal Market Data Center prints money flows daily.  It is as accurate of an indicator of market direction that I know of.  For example, the last time it gave a sell on strength rating, notice what happened.

OK, so the money flow ran dry on the SPY on February 14, 2010, just before QE1 ended.  There is one other indicator which has nailed the S&P spot on since the beginning of the rally back in March of 2009.  That is the Fibonacci Time Series.  Combined with money flows and QE programs, this seems too easy.

If past performance is indicative of future results, August 8 will be when QE3 gets announced, but who really knows.  Just so you know, Thursday's money flow looks bad. Steve