Top Chart: Institutional buying and selling chart from stocktiming shows more distribution than accumulation, so the trend is not officially changed (to up) yet.

Bottom Chart: Smart money near record short despite huge rebound this week, so it’s case 1 below, I read it really bad for bulls.

1.) When market up huge, if I see smart money huge short, best if new record short, then I know a short-term pullback is due soon.
2.) When market down, if I see smart money suddenly rises from very negative value, then I know the pullback was over.

0801_Cobra

Friday was a Bearish Reversal Day (open high, higher high but eventually closed in red), so very good chances there’d be a from high to low mini 2% pullback soon. The high is not necessarily Friday’s high though, in some cases, SPY may go up for a few more days before the from high to low mini 2% pullback.