The markets failed to move higher this week, the Dow closed down 0.24%. IBD has classified the up-trend as “under pressure” due to the numerous distribution days and I find myself curious as to how much longer the market can keep things moving higher.
Just a quick glance at the chart above and you can see that we have been having more down days than up days in the last two months.
As the market rallies back from the recent sell-off, the calm seems to return to investors. At this point in the rally I really think this could be best related to a short-term pleasure that might only make the long-term pain worse.
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.
