A Big Institutional Test Now?
You already know the market relationship ... Institutional Investors make up for over 50% of the volume on any given day.
When the "core holdings" held by Institutional Investors are expressed as an index, it shows a very accurate picture of what the market "really" looks like.
Why is that? Partly because it is not a recognized and trade-able index. Therefore, it is exempt from hedging and market "games" that could change the appearance of its underlying condition. This is why we spend so much time and money tracking Institutional core holdings, Institutional Buying and Selling activity, and Accumulation/Distribution levels for our paid subscribers. Below is the current chart as of the close yesterday.
What do you see?
Answer: The Institutional Index of "core holdings" is now at a major testing point. Yesterday, it was just 0.79% away from its 6 month resistance line. This will be a major test that will affect all the other indexes.