The benchmark S&P 500 Index currently has 5 distribution days while the Nasdaq Composite and Dow Jones Industrial Average have 4 since the March 1, 2010 follow-though-day (FTD). These distribution days have not been damaging, however the simple fact that we currently have 5 distribution days for the S&P 500 suggests a more cautious approach may be prudent. Trade accordingly.
The benchmark S&P 500 Index currently has 5 distribution days while the Nasdaq Composite and Dow Jones Industrial Average have 4 since the March 1, 2010 follow-though-day (FTD). These distribution days have not been damaging, and normally it is considered healthy for the major averages to have less than 4 distribution days in a four week period. Therefore, the fact that we currently have 5 distribution days for the S&P 500 suggests a more cautious approach may be prudent. Trade accordingly.
Tuesday, April 6, 2010 Market Commentary: Stocks opened lower after the Australian Central Bank raised interest rates for a 5th time by a quarter point to +4.25% and Greece rejected an EU-IMF aid package. The market’s internals remain healthy as this rally enters its 6th week since the March 1, 2010 follow-through day (FTD). It…
Monday, April 5, 2010 Market Commentary: The major averages opened higher after the latest round of stronger than expected economic data was released. Monday was the first trading day after March’s nonfarm payrolls report was released. Stocks rallied around the world after the Labor Department reported the strongest monthly reading in payrolls since Q1 2007. The…