There's a LOT of distribution days piling up on the S&P 500
The distribution day count is presently at 11 and today's distribution day is coming on some pretty heavy volume relative to the other distribution days we've had recently. A distribution day count of 11 is extremely high, the highest we've had since the crash in August. On top of that, we're also seeing a distribution cluster which is 4 or more distribution days in a 10 day period. This points to heavy institutional selling.
So if we do fall from here, where do we go? Where is support???
Well, the first major level of support I see is right around 2100. This isn't just a round number. This is an area that served as prior resistance on multiple occasions between November 2015 and July 2016. When we finally broke and held above 2100 in July, 2100 was retested successfully in September. If we retest this area and it fails, the next area I'm looking for major support at is the 200dma.
So if we do fall from here, where do we go? Where is support???
Well, the first major level of support I see is right around 2100. This isn't just a round number. This is an area that served as prior resistance on multiple occasions between November 2015 and July 2016. When we finally broke and held above 2100 in July, 2100 was retested successfully in September. If we retest this area and it fails, the next area I'm looking for major support at is the 200dma.