So much for all those bullish candles that popped up yesterday. Today was a great example of why you wait for confirmation before initiating positions. The selling accelerated again today, creating another distribution day. I think we can safely say that the rally is done now, given all the distribution days in the last few weeks. Not to mention the simple facts that September was a down month or that the Dow & S&P 500's 50-day moving averages were breached. Earnings season is right around the corner and that will likely drive the next significant move. I'm still expecting a bit of a bounce in the short term but that may turn out to be a shorting opportunity.
Yet Another Distribution Day
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It does feel if the market has changed tone. Remember when all good and bad news caused a rally? Maybe we'll get some early month strength, or maybe we'll have to wait until options week mumbo-jumbo. I haven't even looked at any charts tonight to see where that 200dma is. Still down from here.