Most people around here don't seem to understand the implications of this. When people start threads like "Everyone is buying, or everyone is selling..." it's obvious you don't "get it." So, prices are set by supply and demand... What sets supply and demand? Peoples emotions and their perceptions of the economy and markets. The best description of when prices are up is "People are feeling good about the markets today.", and when they are down is "People are not feeling optimistic today." Now, the really funny part about all this is that the main influence on peoples emotions in my opinion is price itself. When price starts going up everyone starts feeling better... And when everyone who is trading is relatively as optimistic as they can get for the amount of time in question price can go no higher... And starts to fall then everyone starts getting pessimistic again. Well, the 90% who don't make money, that is. The market is not a bank or savings account... It doesn't go up or down based upon a flow of money in/out. It goes up/down based upon changing supply/demand which is controlled by everyone emotions which are set by a variety of factors... The most important being price movement itself.