• 679 days Will The ECB Continue To Hike Rates?
  • 679 days Forbes: Aramco Remains Largest Company In The Middle East
  • 681 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 1,081 days Could Crypto Overtake Traditional Investment?
  • 1,086 days Americans Still Quitting Jobs At Record Pace
  • 1,088 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 1,091 days Is The Dollar Too Strong?
  • 1,091 days Big Tech Disappoints Investors on Earnings Calls
  • 1,092 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 1,094 days China Is Quietly Trying To Distance Itself From Russia
  • 1,094 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 1,098 days Crypto Investors Won Big In 2021
  • 1,098 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 1,099 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 1,101 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 1,102 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 1,105 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 1,106 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 1,106 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 1,108 days Are NFTs About To Take Over Gaming?
  1. Home
  2. Markets
  3. Other

Institutional Accumulation Level Lessens as the Market Moves Higher

"I hope this doesn't become one of those Deja Vu moments down the road."

What are we referring to?

We are referring to the Negative Divergence that is starting to show up on our Accumulation/Distribution chart for Institutional Investors.

If you look at today's chart, you can see how there was a continuing, negative divergence between the NYA Index and Institutional Accumulation levels during the October to March time frame.

As the market kept moving higher and higher, the amount of equity holdings held by Institutional Investors lessened to the point where they ended up going into a double dip Distribution from April to May.

We bring this up because Institutional Accumulation is showing a lesser Accumulation level as the market is moving higher.

The last Divergence occurrence took 5 months before the market couldn't hold itself up on its own. Assuming this negative divergence continues, the question now is how long will it take for a similar scenario?

NYA (New York Stock Exchange Index)

 

Back to homepage

Leave a comment

Leave a comment