The statistics are correct however there is not very many cases supporting the conclusion that distribution quickly after a FTD leads to a rally failure.
We had clear distribution on all indices yesterday. On Monday we had technical distribution on the NYA, Dow and S&P but that conclusion is as muddy as the FTD we got on Monday because of the light Friday half-day trading volume.
Originally Posted by
adam ali
Mike,
I received this on my Twitter feed (see below). Did we get an actual distribution day and, if so, do you agree with the 95% stat below?
When a Distribution Day comes 1-2 days after a Follow Through Day; the FTD fails 95% of the time.
And this on the IBD website:
Stocks stepped back Tuesday, as the nascent uptrend ran into a little trouble. The NYSE composite lost 0.6%, while the S&P 500 shed 0.5%. The Nasdaq fell 0.3%, ending a six-session winning streak. Volume rose from Monday's levels on both main exchanges, handing a distribution day to each main...
Read More At IBD:
http://news.investors.com#ixzz2DWOBdPve
Mike Scott
Cloverdale, CA
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