Based on extremely large block trades crossing the tape over the last four weeks, it appears capital has been moving out of stocks. This aligns with what occurred in August 2022 and August 2023 when active managers were reducing their risk exposure. In order for a sustainable rally to continue the index would first need to drop below the lower trend line with a reading of 60 or below. This would provide Market Makers with an opportunity to accumulate additional inventory before moving prices higher.
Note that this information is for educational purposes only and not a recommendation.
Source: National Association of Active Investment Managers
