Billy,
I do suspect the distribution call based on the distortion that BAC volume caused.
We can take distortion analysis too far but this was limited to a single stock and therefore we should at least question the call and the conclusion. The lack of good base setups is still there, this is enough to keep me out of CANSLIM picks. The lack of leading stocks in position to breakout from sound bases still makes the rally failure prone. However nothing says we can't go up 10% in rapid order and then fail.

So I break the caution into two pieces one for medium term investors which I believe the caution flag is out and one for short term investors which may have a green flag.