Coming back to the markets, it is obvious that higher energy prices, decreasing economic exchanges and financial uncertainty are markets negative.
This is of course more present for European equities, which have been underperforming US equities the same way as the Euro has been underperforming the US$ since the start of the war. In other words, both the US$ and US equities have gained the status of safe haven.
This is probably why we see positive EV divergences in the QQQ ETF or positive Money Flow divergences in the S&P500.
Now, in terms of money allocation, it is obvious that energy/materials/PM/agriculture have been attracting most of the money for the past days.
On the other hand, Tech/financials and speculative sectors such as the IPO ETF have been under heavy selling.
Interesting enough, health/drugs/biotech seem to be attracting some money here.
Conclusions:
The big waves of positive or negative Money Flow that we detect are not a sign that some sectors are going to continue moving higher and others will move lower. It is simply a reallocation of risk. It is the fact that million of investors are repositioning their portfolio in order to decrease risk. Therefore, risky assets will continue to feel heavy.
We can see below that the $SPX continues to look weak, but
I believe that it is the New-Highs-New-Lows that will point to a market selling exhaustion and hence to a reversal.
This indicator touching the -800 level will probably be a signal to buy the most risky assets (small tech stocks for example.)
