To gain an edge, this is what you need to know now.

Rally Fails

Please click here for a chart of Nasdaq 100 ETF ().

Note the following:

  • The chart shows that the rally failed.
  • The rally was mainly due to momo crowd buying.
  • The rally failed due to institutional selling.  These institutions are not part of smart money.
  • The VUD indicator is the most sensitive measure of net supply demand in real-time. The orange represents net supply and the green represents net demand.
  • The VUD indicator is mostly green.  This indicates buying under the surface as the rally failed.