We are at an uncomfortable stage in the market: it’s not going up, but the rally isn’t over.
When determining when a rally is over, IBD says to look for a slowdown in price action, pickup in volume, and 3-5 distribution days over a couple weeks.
In the S&P I’ve got 4 distribution days marked on the chart above. Prices have stalled but have held above the 50MA and volume has picked up lately.
Until we have some breakdown in support though, all this isn’t enough to call the rally dead. For now, best bet is to sit tight and let the market make its moves.
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