Never like to see the market get sold off into the close. This led to a ‘buy’ signal on the $VIX in the 60min time frame when the 13EMA crossed up through the 34EMA on the last 60min candle. Not only that, but the $TRIN closed at 1.44. For a while I thought that this could have been a result of too much selling in C, but C didn’t really have enough volume to scew the $TRIN to such a degree. Therefore I have to label the action in the $TRIN today as Stealth Distribution. We had a minor bit of Stealth Distribution on Thursday which was followed by Friday’s sell off. So we now have had two incidences of Stealth Distribution in the past four sessions. This is not enough evidence yet to say it’s really time to batten down the hatches, but it needs to be watched in the next 2-3 sessions.
Chart of $SPX showing it moving above all the MA’s and both rising trend lines and this has to be taken as bullish action for now. Another bearish doji today, but so far these have not resulted in a reversal and the Shooting Star Doji is considered to be low reliability. However, should $SPX close below today’s low of 1290.22, then that’s another story.