Money Flow Analysis Shows Fewer Sellers, But No Surge in Buyers

7/27 - "Another part of bottoming is seeing an increase in the funds being put to work in the stock market. That is the function of the money flow indicator, which tracks the dollar volume entering or exiting stocks on a daily basis. It does this by tracking every single market transaction in every stock, adding the dollar volume (price times volume) to a cumulative total if the transaction occurs on an uptick and subtracting it from the total if the transaction occurs on a downtick."

"Note how selling dried up from January through March prior to the market's bounce higher and how selling also dried up from the latter part of May through early July prior to recent market bounce. I've found this to be a common pattern: a decrease in buying or selling prior to an intermediate-term market reversal.

Still, a waning of selling is different from an influx of buying. Wh...