Charts and Commentary
Since Institutional investors control billions of dollars in the markets, its a good idea to check what they are doing and what is happening to the value of their "core holdings".
Below is the Institutional chart of what has happened to their core holding since the beginning of this year.
Note that Institutions have had 3 major shifts in direction so far this year. The directional shifts in the last 4 months have exhibited large swings in value.
Since July, a stable up trend in the value of their core holdings has occurred as institutions continued to buy. And, so far, the up trend remains in place to the upside.
After making a large retracement on its prior move, the current up trend is now approaching its major resistance line. Obviously, only two things can happen now if the core holding index actually rises as high as its upper resistance line ... a break through to the upside for a renewed bull market rally, or a downside failure for another market correction.
This is where it now rest on Bernanke's shoulders. If he has pushed interest rates to far, then we get a recession. Already, many analysts are discussing ... not if we get a recession, but if we get a "soft" or "hard" landing.
Apparently, institutions haven't bought into the recession possibility yet as their core holding's trend is still in tact. If it breaks to the downside in the coming weeks, then that will be a different story. Watching what happens to institutional core holdings will be very important because billions of stock market dollars will behind a change of direction.
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