By Richard Russell
Putin, Ukraine, Russia, quantitative easing in Europe, Greece, the crashing of the plane with 150 dead souls … the newspapers are filled with such a collection of point and counterpoint news items that I’m ignoring them all and turning to the action of the stock market. Maybe the most noteworthy item having to do with stocks is the fact that there are now seven distribution days in the Nasdaq and seven in the S&P. Distribution days are indicative of institutional selling. My formula has been: 11 distribution days constitutes a caution signal. 14 combined distribution days is usually enough to put a cap on any stock market rally. A distribution day is a day when the stock market is lower on higher volume than the previous day.
Following the steady decline in recent days, it would be normal to have a technical rebound. Today, as I write one hour before the close, the ... Log in or subscribe to continue reading.