Over the last week, we can see evidence of institutional buying, however, the downtrend is not broken. What the buying means:
1) Institutions believe we are closer to the end than the beginning.
2) The 3600 region is a level where they feel some stocks are on a discount.
It is not easy to move into large positions, so fund managers saw this as a long-term opportunity to begin establishing positions. I expect we may see more upside but it is likely that we will see another leg down to the 3200 level. At this point, significant buying will step in.
1) Institutions believe we are closer to the end than the beginning.
2) The 3600 region is a level where they feel some stocks are on a discount.
It is not easy to move into large positions, so fund managers saw this as a long-term opportunity to begin establishing positions. I expect we may see more upside but it is likely that we will see another leg down to the 3200 level. At this point, significant buying will step in.