AbleMarkets Institutional Flows and News AI Trends Can Be the Game-Changers

By Irene Aldridge (

Post date: 2024-05-22 10:49:49 GMT

Take advantage of AbleMarkets data

AbleMarkets analysis reveals that institutional flows drove most of the U.S. market rise in 2023. However, in 2024, institutional investors have been reducing their exposure, leading to lower SPY returns.

The AbleMarkets News AI also has a strong explanatory power. According to their analysis, the 20-day NewsAI trend becomes statistically significant at a 90% confidence level by the third trading week after a trend—positive or negative—is detected. This statistical significance lasts until the seventh week following the trend detection. The NewsAI index trend can explain 2-3% of the variation in the S&P 500's price.

For institutional flows, the 20-day net trend becomes statistically significant in the second week after it is detected, peaking in significance in the fourth week. The predictive power of institutional flows extends up to the eighth week following the trend detection.

When combined, institutional flow and News AI trends are even more powerful, explaining 3-4% of the return variation in SPY (as measured by R-squared). The combined effect is most significant approximately one month to six weeks following the joint trend detection.

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