Is This An Institutional Investor Warning?

Posted by Stock Online Trader on September 4, 2008 in Market News |


Is this an Institutional Investor Warning?

You know the reality … Institutional Investors have the directional control over the markets because they are responsible for 50% to 70%+ of the stock market’s volume on any given day.

Above is a chart showing the “top core holdings index” held by the large Institutional Investors. Take a quick look at it … what do you see?

Note the MACD pattern that occurred last December which was followed by a sizeable downside move in the stock market.

Now, look at the current MACD pattern. Looks familiar doesn’t it?

The message it sends is a Warning that investors should be cautious and on the alert for another possible downside move on the MACD which would correlate with another downside leg in the market.

At the close yesterday, the MACD hadn’t yet signaled such a down move, but a “CAUTION Alert” is definitely warranted. The current pattern doesn’t guarantee that the next MACD trend will be a down move, but it does say that we are at an important pivot point where an important change is not very far away.

(Source: StockTiming)

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