medium · Volume Spread Analysis supply-demand-smart-money
How does the principle of 'Market Rotation' explain why an index might move sideways while some sectors are already in a mark-down?
- It indicates that market-makers are withdrawing entirely, leaving all order flow unsupported.
- Rotation causes all stocks to accumulate at the same time, which prevents any broad market collapse.
- Indices are propped up by late-cycle sectors being marked up while early-cycle sectors are distributed.
- It proves that indices move in a purely random fashion and do not follow the underlying laws of supply and demand.
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