Institutions often lead the way for the market. One of the best ways of following institutional action is through volume. Distribution days, when the institutions are selling, are days when the market declines on rising volume. This action is indicative of institutions leaving the market. When the market rises on expanding volume, I call these accumulation days. These are days when institutions are buying. When the market rises on lower volume, I consider this weak action, or buying by the retail public rather than by the institutions.
One of the characteristics of a bull market top is an almost total lack of bears. The latest CBOE put-call ratio shows the fewest puts in over 10 years. My old buddy, the late Joe Granville, identified a bull market peak by the looking for the greatest number of new highs on the NYSE. He termed this peak in new highs as the high for ... Log in or subscribe to continue reading.
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