Here we can see that dollars are still not flowing into stocks, as the Dow Jones Industrial Average (blue line) is on its way toward testing its mid-July lows. The horizontal blue line represents the zero level for dollar volume flow: the point at which capital inflows and outflows to and from Dow stocks are exactly equal. The four-day moving average of dollar volume flow (aka money flow) has remained consistently below the zero level, suggesting that sellers are dominating among the large caps. Even when the Dow has bounced from intermediate-term lows, positive money flows have only been sustained for a short period of time--and have represented excellent selling opportunities.
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