We had another tick distribution signal today. Very high volume as well. The last high volume distribution signal day ended up being a short term bottom. We are getting quite a few distribution signals with no accumulation signals since last August. This kind of pattern has not happened before in this bull market.
SPX is at the lower 50 Keltner channel line. That can often cause a bounce the first time it is hit in a long time.
Due to the slow nature of a virus slowing the economy a bounce here would not be surprising. We should not be surprised if the sellers show up before new highs are hit if we get a bounce. The news flow is likely to remain negative as far as the virus goes for a while. Trading this market short term is likely to be tough. One needs to be very nimble.
Peace.
Bob
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