Stock Market Update

Today the S&P was down about half of a percent which is not much considering how much of a rally we've had since the June lows. Just looking at price action alone would suggest that the bull market is alive and well and at this point it certainly is but what's beginning to concern me is what's happening with volume.

Lets take a look back in June when the Market was making new highs which I've so beautiful shaded (wink). You'll notice within this shaded area we've had 3 down days where the volume exceeded the prior up day's volume. These are known as distribution days and are considered somewhat bearish. As you can see that market subsequently sold off  rather sharply.


Now lets fast forward to today and analyze what we are seeing.. You'll notice in the shaded area which I once again highlighted in such a beautiful fashion that within this sideways consolidation we are seeing 6 days where the volume on down days exceeded the prior up day's volume. This has negative implications especially if we close below the support area which I've highlighted in green.

Support for SPY is at 217 to 21760. Lets take it one step at a time and see how the market handles this area.