We’ve had a third instance of Stealth Distribution with the $TRIN closing at 1.14 even as $SPX rose by 8.51 pts on Tuesday. I am now on high alert for some kind of pull back, which could be substantial as things like $NYMO with Bollinger Bands, Zweig Breadth Thrust, and a few other indicators are showing extreme overbought. While I don’t expect an immediate market reaction, I do expect that if the market is going to react negatively to this overbought situation under the veil of Stealth Distribution, then we should have an idea by no later than Tuesday of next week. If we get through to Wednesday without a negative reaction, then I’ll consider these Stealth Distribution signals to be false.
I have also created a page just for Stealth Distribution. It’s just above this page.
Enjoy your 4th and be careful for the next several days.