Recently we have seen large hedge funds unwind VIX option positions that indicate they have become bullish on the market after being bearish up to this point for the year. We have also seen institutional investors moving cash into the market, while May has been a difficult month for stocks.
The smart money investors are obviously not always right in their calls. For confirmation of that just see what the hedge funds have done this year staying out of a bullish run, however, it would not be wise to ignore them either.
Stocks go up only when new money comes into the market and there is an awful lot of money on the sidelines. At some point that will drive stocks higher. Of course we are also entering the most difficult time of the year for stocks.
It is never easy!