We track the trending of the "core holdings" held by Institutional Investors.

It's really important, because the "core holdings" are the best of the best stocks that Institutional Investors own.

While some indexes may look hot as they make new highs, the Institutional Index of core holdings has NOT made any new highs.

In fact, on May 22nd. it came to its old adversarial level in terms of its peak high it made on October 11 of 2007. On May 22nd, the Institutional Index faced that resistance level and could NOT get past it. It subsequently moved lower since then.

Last Friday looked good to many, but a May 2nd. gap was closed last Thursday, after which the Institutional Index bounced up on Friday.

Here is the important point of today's comments:

The Institutional Index did NOT take out 2007's high and thus has not made new breakout highs. The important point here is that the market CANNOT hold onto any new highs unless the Institutional Index of core holdings does the same.

Remember, these are the best and safest stocks Institutional Investors can find, and if these stocks don't trend up with the market, Institutions will get scared and start some serious selling.

I'm not trying to scare anyone, but think about all of this logically ... if we don't see the Institutional Index moving back up and making new highs soon, how can the rest of the market do it and leave these "top core holding stocks" behind?