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?

  1. It indicates that market-makers are withdrawing from the market entirely.
  2. Rotation causes all stocks to accumulate at the same time, preventing a collapse.
  3. Indices are propped up by late-cycle sectors being marked up while early-cycle sectors are distributed.
  4. It proves that indices are random and do not follow supply and demand laws.

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