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Can Institutional Buying and Selling Levels Predict the Market's Direction?

Using Institutional Buying and Selling data is not a trading system, but some people do base their trades on Institutional Buying and Selling activity.

We post the Institutional buying and selling data everyday on our paid sites, and today's chart shows the "Net" of Institutional buying minus the amount of Institutional selling for any given day.

Reading the chart is really easy ...

When the green bars are above zero, Institutional Investors are in Accumulation. When the green bars are below zero, Institutional Investors are in Distribution. When investing, don't try to go against Institutional investors because they will win.

So, are Institutional Investors in Accumulation or Distribution now?

Well, they are in Accumulation. BUT ... their Accumulation levels peaked on September 20th. Since then, the amount of Accumulation has been decreasing. That pausing is fairly normal right now, because the NYA Index is testing a critical, 3 month resistance line as shown on the chart.

Commentary: For the NYA index to break above its resistance line now, it will need the Institutional Accumulation levels to start rising again.

If Institutional Accumulation levels continue to drop, then the market and the NYA Index will also drop. (Today's Net Institutional Buying and Selling chart is posted every day on our paid site, and is being posted as a courtesy to our free members today.)

Institutional Buying and Selling

 

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