> For the complete documentation index, see [llms.txt](https://docs.candelacharts.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.candelacharts.com/investing/macro-and-liquidity/sector-etf-flows/confluences.md). # Confluences Sector ETF Flows Confluences Sector flow data is highly effective when paired with traditional price action and market breadth indicators. * **Market Breadth**: Combine sector flows with advance/decline lines or the percentage of stocks above their 50-day moving average. Strong breadth combined with aggressive inflows into multiple sectors confirms a healthy bull market. * **Relative Strength (RS)**: Use relative strength comparisons (e.g., XLK vs SPY). A sector exhibiting strong price RS that is also backed by massive ETF inflows is a prime candidate for long positions. * **Index Breakouts**: When major indices like the S\&P 500 or NASDAQ break out to new highs, check the sector flows. A breakout driven by broad, multi-sector inflows is structurally sound, whereas a breakout driven by only one sector (with others seeing outflows) may be fragile. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation by asking a question. Perform an HTTP GET request on the following URL with the `ask` and `goal` query parameters: ``` GET https://docs.candelacharts.com/investing/macro-and-liquidity/sector-etf-flows/confluences.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is what the user is ultimately trying to achieve, the reason they need the answer. Sharing it helps GitBook give you a better, more relevant answer. A goal is most helpful when it describes the outcome the user wants rather than restating the question. For example, with `ask=how do I create an API token`, a goal like `automate deployments from our CI pipeline` lets GitBook tailor the answer to that use case. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.