Thank you for sharing, Robert. This is an interesting development with IWM price supported by a nearby intermediate term trendline, while money flow seems bounded by a declining trendline.Originally Posted by brrim
A breakout of 20 DMF above the line would of course confirm a continuation of the current rally. But it also suggests that more money can be made now in a basket of individual leading stocks and with a better reward/risk outlook than when investing in market indices. Indeed, an interpretation of the divergence between price and MF could be that the rally is mostly fueled by a small percentage of the stocks included in the 20 DMF and that these leading stocks are coming from too many different sectors, so that the 20 DMF has some difficulty with its sector rotation algorithm compared to recent history.
Billy
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