What the Major Indexes are saying now …


What the Major Indexes are saying now …

This chart shows the popular indexes and the Institutional Index of “core holdings”.   The Institutional Index is not a “real” index, so it is not subject to market influences by the Fed or other groups.

And … since the Institutional Investors own over 50% of the stock market equities, the index has historically had more significance of what was really transpiring than the other indexes.   So, let’s now look at this chart of 5 Indexes …

The Institutional Index of “core holdings” is at the top of the graph and it closed at a -0.82% difference from the previous day, with the stock market’s Inflowing Liquidity showing a down tick to Upper-Quadrant 2 Expansion territory.   Expansion territory is good, but the amounts of Inflowing Liquidity are down trending, so it needs to stop that down trend soon in order to avoid serious trouble.

Here is what to note about these indexes now:

The Institutional Index, the NYA Index, and the SPY all closed below their support levels. They have all made higher/highs and higher/lows since last May, so they are technically in an up trend.

At the same time, the NDX and the IWM closed above their support levels and not below them.   They too have shown up trending since last May.

So, the market is under great stress right now, but until a lower/low is made on at least one index, they are still in a “longer term” up trend modality.    At the same time, the high stress levels in the market should have you considering what is happening on this chart as a High Alert-Danger condition.

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