$TRIN closed at 1.40 today with the $NYA up 4.07pts, so this is an instance of Stealth Distribution.
Advancing volume was just barely ahead of Declining volume with a ratio of 525:495. This kind of near even volume has been present for the past couple of weeks. By comparison, when the market was charging ahead under a full head of steam a couple of weeks back, we were seeing huge amounts of Advancing volume with scant amounts of Declining volume, as you would expect. Now that’s all changed.
$NYSI has now climbed to 1093, just 100 ticks or so away from the important 1200 level. I don’t know if it’s going to get there this time around. In the past few weeks, $NYSI has been adding about 50 issues per day, +/-. In the last two days, $NYSI has added 21 issues per day. On the surface it’s easy to see that momentum in the market has changed, but it has also changed beneath the hood. This is never a good thing.
The important thing about the 60min chart below is that SPY has fallen below the rising trend line and while it looked like it was going to recapture that trend line in the early going today, that early push turned out to be a Distribution pump, which the pro’s engineered and then sold into. And the 13EMA remains below the 34EMA which just means that SPY/$SPX is best avoided for now.
Chart courtesy of FreeStockCharts.com
Daily $SPX chart showing that the 5EMA is rolling over and is just a couple of points above the 10EMA. No ‘sell’ signal is generated yet but the markets will need to start to rally or ‘sell’ signals will start to fly. Still, $SPX is holding above the rising trend lines and so the benefit of the doubt remains with the longs, for now.
As I tweeted much earlier, I did off load about 1/2 of my remaining shares in UPRO. This could end up being the dumbest thing I’ve ever done which is why I only sold 1/2. Time will tell.