Generally speaking, net money flow trends are indicating that money is staying in the stock market, but that it is rotating among different categories. 

A more cautious stance was taken after mid-July around the time major stock indexes peaked. 

The AI craze on Wall Street may be dissipating and this is something to watch closely in the coming days and weeks. Numerous stocks in the AI-related theme are showing signs of ebbing upward momentum… 

Yesterday the spotlight was on the traditional cyclicals — a category I’ve been mentioning for some time as an important group to watch in terms of rotational characteristics. 

We are just about at the midpoint of August and it seems the doldrums are setting in on Wall Street; there seems to be little conviction, buying or selling. 

Looking at a chart of the DJIA for this week’s trading, we see a real sawtooth pattern; I think that this is a trend that we will see for weeks to come. 

In recent weeks I’ve been mentioning that I believe that the stock market is going to adhere to a trading range pattern that could continue well into September, and maybe even a little bit beyond. 

The stock market could be reverting to a more reactive state, something that we have seen in the past, but for some time the market’s focal point was forward looking. 

With a majority of the S&P 500 companies reporting 2nd quarter earnings, the results are not all that terrific.