The Chaikin Money Flow Indicator, CMF which is a constant on my tradingview.com platform continues to reveal constant selling pressure in the S+P 500 that seems unabated, even when prices are rallying.
Look at the indicator for the first trading day of 2019. As prices rallied back from the lows of the day, the Chaikin Money Flow Indicator was telling a completely different story.
As seen on the CMF chart included in this article, distribution or underlying selling pressure,was in a steep rise throughout the day and was not supporting price rise. That is called clear divergence.
That invaluable information is giving you the first clues that the late price rally in the S+P 500 is very suspect at best.
Indicators can have various functions that can add great illumination to price analysis.
The Chaikin Money Flow CMF, Indicator is such an indicator. It is an indispensable tool, that every trader should use each day in the market.
The algos just loves to create wedges and consolidations the last days. boring. hopefully one more move down soon
jtai99
⋅
Thanks unwind. I should’ve gotten out of my long position last night but its all good. I was able to get out still with a profit.
harvs12
⋅
Just started following you about a month ago and am learning a great deal! Keep up the great work you’re a wealth of knowledge for me:) Happy New Year!
Appreciate this so much, you actually have no idea. Thank you!!! I hope you can use a snowmobile for the cash piled up in front your door, its starting to block my view for the kids playing in the garden.. ;)