Charts and Commentary
Over 50% of all the market buying and selling comes from what the Institutional investors do.
That makes them a critically important element in where market trends are going, and when they end.
Below is an updated chart showing the trend of the "core holdings" that Institutions hold.
Currently, the price action is showing a topping process. The Institutional graph below is showing that their core holdings have shifted through 3 deteriorating channels which is typically part of a topping process.
Note the difference between the first channel and the current channel. The first had a long ascent with small pull backs in a tight channel. Currently, this 3rd. channel is wider with larger pull backs and a greater degree of volatility.
Each channel is producing a channel top that is only slightly higher than the previous channel top. This indicates that there is less upside potential with greater downside risk developing. This gives us a risk/reward equation that is unsatisfactory for conservative investors.
Yesterday, the Institutional Index remained in its third channel and above the Channel's support. Notice the sharp 3 day down movement when the second channel was broken. This is typical of weaker 2nd channels. This third channel should also show the same kind of market down movement when the channel breaks.
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