Tuesday, May 13, 2008

Like waiting for paint to dry....



Here you can see Chaikin Money Flow diverging with price, and about to turn negative.

Waiting for tops to finish their job is a lot like watching paint dry sometimes...

3 comments:

czman said...

I wished it were true. But you're own chart shows money flow going ositive in an earlier period, while price was gapping up. What is the probability of correlation?

czman said...

sorry, I meant money flow going negative

mlytle said...

Hi Czman,
Money flow can mislead, as it did this time, sometimes educated guesses can be wrong. Now we sit at the 62% fib retracement of the whole move from March with Bollinger Bands almost on top of them. we'll soon see if this is just a bear market rally or something else...I think it's a bear market rally...

Regards,
Mark L.