According to the Federal Reserve, what group accounts for over 50% of the Stock Market's trading volume? ... and, what are they doing now?
Who is this group? Institutional Investors.
That's why we post daily Institutional updates for our paid subscribers. This morning, we will show you the current price-movement chart for the "core holdings" of Institutional investors.
Below is an 8 month Institutional price chart. From July to August, the Institutional Index formed a rising wedge. Historically, rising wedges break to the downside and continue a down trend.
But ... not this time. It reverted back to the upside and formed a very tight, high inclined channel.
This very thin channel has been nothing short of amazing from a technical standpoint. Since September, the Institutional Index rose to the upper Channel's resistance a total of 12 times. In 100 % of those cases, the index retreated with precision. In 12 out of 12 tries, it never was able to penetrate the resistance.
At the same time, the lower Channel's support was tested 4 times ... and each of those times, the Institutional Index successfully held and moved back up.
The important aspect about the Institutional index, is that it has been the leader in this market up move.
Obviously, small tight channels like this don't go up forever, so when investors see it break down, it will be one of the signs that the big boys will be on a profit taking spree.
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