The same happens in the stock market. When lots of money moves in, Liquidity levels move from Contraction to Expansion. When Liquidity hits an expansion level, competition for stocks will drive prices up and the overall market will propel upward.

Currently, the market is showing a short term bias for the upside, but there is one disturbingly missing ingredient so far.

What is it? Liquidity.

Liquidity levels remain in Contraction. Daily movements are showing oscillating moves, so volatility will remain high while this goes on.

What do we need next? We will need to see the Liquidity indicator move up and make a higher/high than the May 27th high (see the red arrow). It takes inflowing liquidity to sustain up moves because without it, up moves falter. (Today's Liquidity Indicator chart is presented as a courtesy to our free members and can be seen daily on our paid subscriber sites.)

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By Marty Chenard
http://www.stocktiming.com/

Please Note: We do not issue Buy or Sell timing recommendations on these Free daily update pages . I hope you understand, that in fairness, our Buy/Sell recommendations and advanced market Models are only available to our paid subscribers on a password required basis. Membership information

Marty Chenard is the Author and Teacher of two Seminar Courses on "Advanced Technical Analysis Investing", Mr. Chenard has been investing for over 30 years. In 2001 when the NASDAQ dropped 24.5%, his personal investment performance for the year was a gain of 57.428%. He is an Advanced Stock Market Technical Analyst that has developed his own proprietary analytical tools. As a result, he was out of the market two weeks before the 1987 Crash in the most recent Bear Market he faxed his Members in March 2000 telling them all to SELL. He is an advanced technical analyst and not an investment advisor, nor a securities broker.

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