At TraderFeed this weekend, Brett Steenbarger notes that money is still flowing out of the market, but he also points out divergences which could prompt him to buy stocks aggressively if they continue.
Money Continues to Flow Out of the Stock Market
Excerpt: "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… 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."
More here.
Divergences Appearing in the Indicator Data
Excerpt: "Credit to the Decision Point site, which tracks the common stocks only for the NYSE Composite Index. As the NYSE Composite has moved to 52-week lows (top chart), we see that the number of NYSE common issues registering fresh 52-week lows (middle pane, top chart) has shriveled to only 124 on Friday, compared with around 450 at the mid-July lows… If these divergences continue, I will be looking to be an aggressive buyer of stocks"
More here.
