The past five trading sessions have resulted in an amazing wipeout. Three months of stock market gains have been erased in days. Today's chart shows how the "big money" has played a big role in this loss.
You see, a healthy stock market is like a big truck. It requires a constant supply of "buying fuel" to drive prices higher and higher. This fuel can only be supplied by the large portfolios controlled by hedge, mutual, pension, and insurance funds. No market can climb hills without this big money buying power.
At the bottom of our chart is a series of red and black vertical bars. These bars represent the trading volume on a given day in the huge S&P 500 investment fund (SPY). Red bars represent the trading volume on days the market declined. Black bars represent the trading volume on days the market advanced. The taller the bar, the greater the volume.
As you can see, the big money isn't much interested in stocks right now. The market was punched in the gut by several high-volume down days back in October. It then staged a rally on flimsy holiday volume in November and December. In the past week, however, this rally has been wiped out by big declines on mega selling volume. Color this decline "big money approved."
You see, a healthy stock market is like a big truck. It requires a constant supply of "buying fuel" to drive prices higher and higher. This fuel can only be supplied by the large portfolios controlled by hedge, mutual, pension, and insurance funds. No market can climb hills without this big money buying power.
At the bottom of our chart is a series of red and black vertical bars. These bars represent the trading volume on a given day in the huge S&P 500 investment fund (SPY). Red bars represent the trading volume on days the market declined. Black bars represent the trading volume on days the market advanced. The taller the bar, the greater the volume.
As you can see, the big money isn't much interested in stocks right now. The market was punched in the gut by several high-volume down days back in October. It then staged a rally on flimsy holiday volume in November and December. In the past week, however, this rally has been wiped out by big declines on mega selling volume. Color this decline "big money approved."
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