SPDR S&P 500 (SPY)

[learningboutinv]

Interesting article from Stocktiming.com. Notice Liquity Outflows is almost as low as June06, Jan08 and March08 lows. I'm not saying it can't get any lower, but it's pretty low.

Excerpt: "Liquidity inflows and outflows are easily understood by any corporation. When their cash inflows are positive and increasing, they have money to expand and hire. When their cash is outflowing and negative, their businesses contract and they layoff workers.

The stock market is not any different. If you measured the amount of liquidity flowing into, or exiting the market you would see that these money flows correlate to market rallies and market corrections.

When Liquidity flowing into the market reaches expansion territory, stock values rise and the market rallies up.

However, when Liquidity moves into Contraction, stock values sink and the market goes into a correction."




http://www.stocktiming.com/Thursday-DailyMarketUpdate.htm