Institutional Buying and Selling Trending from www.stocktiming.com:
Chart B: Liquidity Inflows and Outflows
Liquidity inflows are critical to the market's action. If indicators are weakening while Liquidity is flowing in, then the liquidity inflow will take precedence and hold the market up.
Liquidity inflows ticked down while at an extreme level and above our resistance line.
Chart C: Institutional Accumulation/Distribution
On October 1st, Institutional Investors had their first day of Distribution since July 15th. On Friday, October 9th, they were back into Accumulation. Yesterday, Institutions had decreasing Accumulation. Institutional buying decreased, and selling increased. The Selling and Buying are closing in, so this is a Caution Level. Do note that the Institutional Selling is still in a up trend (higher/highs and higher/lows).
*** Conclusion on the above charts A to C: Liquidity is still at a high rate and inflowing. If you look at the Institutional Buying & Selling chart, you can see that they have been buying less while continuing to increase their selling (profit taking). Institutional Investors have been selling slow enough for the market to absorb the selling. Institutions are fairly close to going into Distribution which creates a high risk condition.