Two weeks ago, we examined the 14-week cycle tops which projected a top on ~ May 24, 2011. Last week, we investigated the Golden Ratio cycle which projected a top on ~June 13, 2011. This week, we'll explore my Money Flow T™ forecast.

As a reminder, tutorials on my Money Flow T™ discovery are located in the archives at www.TTheory.com (see T Theory Observations for the weeks of January 16, 2011 through February 13, 2011). Note: the Money Flow Index is a volume-based indicator, and Money Flow Ts™ are volume-based patterns. Anyone who has studied intraday volume knows that the first and last hour of the trading day are usually the heaviest volume hours. As a result of this distribution of volume during the day, Money Flow Ts™ constructed on intraday time frames can be distorted and tend to be less reliable than those constructed on daily or weekly time frames.

Looking at the weekly charts, the weekly SPY Money Flow T™ expires during the week of ~ June 6, 2011:

Similarly, the Dow daily chart shows a Money Flow T™ expiring on ~ June 15, 2011.

These Money Flow Ts™ confirm the cycles we have discussed over the last two weeks. All roads point to a top coming in late May to mid-June. Until next time, please use caution in your investments and manage your risk wisely.