Is There Enough Liquidity in the Market?

By: Marty Chenard | Mon, Jun 14, 2010
Print Email

When there is a lot of money available for buying an item, supply goes down and prices go up.

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.)

NYSE and Liquidity Flows



Marty Chenard

Author: Marty Chenard

Marty Chenard
Asheville, NC 28805
Tel: 828-296-1200

Marty Chenard is an Advanced Stock Market Technical Analyst that has developed his own proprietary analytical tools and stock market models. 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. is dedicated to Stock Market Investors who want the best information on stock charts, stock market trends, stock market timing and technical analysis.

Be My Guest and Take Advantage of Our Free Membership ... Get a Free Membership to ... Youll receive important daily messages before the market opens and direct links to todays important web pages. Information and messages that are often not posted on our website. There is no obligation or expectation on our part ... it is just our way of proving our accuracy and timing expertise to you. Please click here for your Free Membership.

Copyright © 2006-2017 Marty Chenard

All Images, XHTML Renderings, and Source Code Copyright ©