I’m sure investors are paying attention when funds are flowing into IVV and SPY. Last Thursday was one of those days that reported billions of funds flowing into these two sp500 related ETFs.
Who says that these fund flows isn’t dumb emotional money thinking the bear market is over! This kind of fund flow always happens near tops just like in January when investors stuff their accounts to make it for the 2017 tax season. In late January 2018 is when my 5 wave counts finished, which was followed by another record-breaking secondary top. The bullish “C” wave is about as choppy as you can get, so this tells me that IVV was also in a rally going against the larger trend. Missing an expanded top anywhere throws the entire wave count into disarray forever, if it is not rectified instantly. Every major index in the USA has this expanded pattern, so it’s not just one lonely little pattern. Expanded tops happen frequently so they sure are not rare market patterns.
I started a new category with IVV as I may post more of IVV in the future.
Since the expanded pattern is basically an inverted flat or zigzag, it would be a bear market rally. To confirm that this is still part of a bear market rally, then IVV still has to crash below that $256 price level. Lower lows and lower highs are the signs of a bear and right now we are in No man’s land like Flanders Fields, except we have bulls and bears fighting over who controls the space.
These counter rallies can be terrifying for the crowd that is fearful of missing out. Decisions made under fear never seems to work out very well.
I don’t trust in-flow numbers that much as I think insider buying reports are far more important.