Are Institutional Investors Close to Selling?

By: Marty Chenard | Thu, May 8, 2008
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Today, we will once again share a chart from our paid subscriber site.

This chart shows the trend of Institutional Selling. When Institutions keep lowering the amount of their selling, it opens the way for the market to move up because their is no hindrance. Institutions account for over 50% of the market's volume, so they have a predominant influence on the markets.

I inverted the Institutional selling chart so that it would track with the NYA Index. (Decreasing selling by Institutions correlates with an increasing market movement.)

So, what is the Institutional Selling Action saying now?

If you observe the two circled areas, you will see that the Selling is forming a curved bottom pattern similar to last year's pattern. Institutional Selling is now moving flat and sideways ... in other words, the rate of decreasing selling has slowed down a lot.

What to watch for: We post this chart every day on our paid subscriber site. We will now be watching to see if the Institutional selling trend moves lower ... or back UP like the previous pattern. If reverses and trends UP, then Institutions will start a wave of selling and the market will move down.

Note for paid subscribers: Be sure to see the combination chart of Institutional Buying versus Selling on your update today for its important message.



Marty Chenard

Author: Marty Chenard

Marty Chenard
Asheville, NC 28805
Tel: 828-296-1200

Marty Chenard is an Advanced Stock Market Technical Analyst that has developed his own proprietary analytical tools and stock market models. As a result, he was out of the market two weeks before the 1987 Crash in the most recent Bear Market he faxed his Members in March 2000 telling them all to SELL. He is an advanced technical analyst and not an investment advisor, nor a securities broker. is dedicated to Stock Market Investors who want the best information on stock charts, stock market trends, stock market timing and technical analysis.

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