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Strategies & Market Trends : MARKET INDEX TECHNICAL ANALYSIS - MITA -- Ignore unavailable to you. Want to Upgrade?

To: Chip McVickar who wrote (7667)	5/1/2001 11:25:33 PM
From: GraceZ	Read Replies (1) \| Respond to of 19219

It's more difficult to use this kind of analysis with an index tracking stock. On SPY that red indicator doesn't have the same significance it does on the individual company stocks. As you can see the money flow is bottoming out and it cut it's down trend and started to rise around 5220, but then changed trend again and diverged south from price just after 6141. This could mean one of two things, the institutions didn't trust the move as much as the public (white is net in after 6448 chasing price) or they are hedging long portfolios by selling short. Turquoise rising means that the selling isn't resulting in corresponding price concession. It doesn't take a genius to figure that out since the price line is diverging sharply up from money flow after 6141. The one thing to remember is that this kind of analysis only tells you what is happening not what will happen and as I write this that chart is only current up to 4/30 and a lot happened today. The money flow went positive on the QQQ mid afternoon today (big surprise) and I expect it will have gone positive on SPY as well. If that is true then it would be a case of the "smart" money following the "dumb" money back in or a case of short covering started by the public running the price up.