Good morning traders. Our proprietary money flow ( MR) indicator tracks the amount of money traded on upticks versus the amount of money traded on downticks for the broad market on an intraday basis. We take this information and plot it on a daily chart versus the S&P 500 Index ( SPY). The chart reflecting data as of yesterday's close is pictured below.

Since mid-August, the money flow indicator forewarned of the pullback that has occurred in stocks by diverging from the continuation higher by SPY(magenta arrows). Unfortunately, money flow is continuing to decline in spite of the broad market's price stabilization over the past three days.

With late day price declines by the broad market two of the last three days, and the continuation of negative money flow, we are becoming less confident that this is the bottom for stocks in the medium term.