SPY Moneyflow continues to suggest topping
I haven’t provided many charts in recent months and the primary reason is that I got a new “workstation” in my 9-to-5 job. As is the tendency among larger corporations these days, administrative rights have been further restricted on my new station. Practically speaking, that means I can no longer use my beloved TD thinkorswim program, which was my charting baby. It’s an awesome program, for those of you who haven’t tried it. It remembers every trendline and keeps them in place through any/all scaling. Sadly, I no longer have access to it during the day – which is when I am typically looking at the market. I have been riding the precious metals turnaround for over a month now and think it could just be breaking out in earnest. But today, I thought I’d mention the broader market. The SPY has formed a pretty steady upper trendline in its linear chart and recently sold off when hitting that line. Also, Moneyflow – which is tends to be a very good lead indicator (although often VERY early) – has continued to decline precipitously, and is down to its lowest level since 2011. Notice how moneyflow declines foreshadowed market declines in both 2011 and 2012 (and on longer term charts, the pattern is even more clear). This year, that has not been the case (due to QE?). I expect that will change in time.