Clearly, today’s price action is unhealthy following a poor day on Friday. There are now eight distribution days on the Nasdaq, and today will probably be the ninth. Given the elevated distribution count and the fact that the leadership is beginning to falter, the rally is more suspect, and it is time to be more conservative and cautious. I can’t help but look at the Nasdaq weekly chart and wonder how much further the market can go, given the substantial move its had since January 2013.

 

Best returns,


Scott O’Neil

President

MarketSmith Incorporated

Follow Scott O'Neil at Twitter.com/WScottOneil