SMART Money Flow Index DJ Industrial Index

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9/18/15

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8/28/15

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7/31/15

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6/26/15

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6/5/15

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The Smart Money Flow Index is calculated by taking the action of the Dow in two time periods: the first 30 minutes and the close. Theoretically the
first 30 minutes represent emotional buying, driven by greed and fear of the crowd based on daily news flow. There is also a lot of buying on
market orders and short covering at the opening. Smart money is thought to wait until the end of the trading day and they often test the market
before by shorting heavily just to see how the market reacts. Then they move in the big way. To calculate the Smart Money Flow Index, subtract
the price of the Dow at 10 AM from the previous day's close and add today's closing price. If the Dow makes a high which is not confirmed by the
SMFI there is possibly trouble ahead. Also, when the SMFI is turning higher during times of general selling pressure it signals that Smart Money is
buying.
Source: Bloomberg