What happens to the Stock Market
when Institutions Buy or Sell?
If Institutional Investors represent over 50% of the volume in the markets,
what can their Selling Activity tell you?
This is one of the daily charts we post on our paid subscriber sites. It represents the Daily amount of Selling by Institutions.
When it is trending down, Institutions are selling less and not inhibiting up movements in the market.
When it is trending up, Institutions are selling more and removing their support for the market.
By itself, the Institutional Selling Indicator is not a market timing model, but in conjunction with other timing models, it offers some pretty powerful information.
Take a look at the chart below and see how it correlates with the market movements of the New York Stock Exchange. On August 20th., Institutional Selling started trending down and has been decreasing since that time. That was two days after the market bottomed, and the market has been moving in a positive direction since then.