My last review of money flow among the 30 Dow Jones Industrial stocks found that funds have been flowing out of those large cap names. (An explanation of how money flow is computed can be found here.) Note that the four-day moving average of money flow continues below the zero line and has been sloping downward in recent sessions. Despite some sharp bounces following weakness last week, it appears that these bounces represent short covering rather than a sustained commitment of new funds to stocks. Until we see some sustained inflows into shares, I suspect it's premature to celebrate an end to the bear market. More on this topic in Monday morning's indicator review.
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