The SMART Money Flow Index has just declined to its lowest level since 1995 as The Fed’s QE3 vanishes into the sunset.
The Smart Money Flow Index is calculated according to a special formula by taking the action of the Dow in two time periods: the first 30 minutes and the last hour. The first 30 minutes represent emotional buying, driven by greed and fear of the crowd based on good and bad news. There is also a lot of buying on market orders and short covering at the opening. Smart money waits until the end and they very often test the market before by shorting heavily just to see how the market reacts.
As Keyser Soze said, And just like that, its gone.
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