The bears could not have asked for a better day. I’ve been looking for a break based on the price volume action of the past few weeks. The gap up was sold off on volume with a let up in selling in the last hour of the day. All indices closed with significant distribution, but price remained above the 50 day moving averages.
Just like on the upside, follow through is required to confirm the next leg down. The amount of selling on the leg down will determine the length and depth of the move.
Charts courtesy of Stockcharts.com
Although… based on the recent history of this market, it would not surprise me to see a reversal again tomorrow. But I certainly am not expecting it…
Tags: Distribution Day · Nasdaq Charts · Standard and Poor's 500 (S&P500) · VolumeNo Comments
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