I returned from lunch and saw that the market had recovered somewhat. The close was 1271.50 on the S&P 500 Index which makes for a 0.18% down day. This is not a 1 % true selling day, so our watch continues. The open was 1274.41. The high was 1276.83. The low was 1261.10. And, of course, the close was 1271.50. It was a bearish day. The close was lower than the open. The RSI reading was 70.26, overbought status again. The 13-day moving average was clipped at 1263.50. That's a red flag. The 13-day moving average was last clipped on a down day in early November. The day's volume was the highest this month. And it was higher volume on a down day than the previous day's volume. William O'Neil has written that these days are distributive in nature. In other words, institutions are distributing shares to the retail public. The MACD lines flipped again and are now positive. Finally, the MACD histogram turned positive.
All in all, we are topping. Topping is a process. We were saved from a 1% true selling day, however, I would not be buying or adding at these levels. A correction is in order.
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