Emini Trading Update – Wednesday 26 Mar 2014 (8:13)
James C. has been kindly updating me on his Distribution Day Count. Here’s what he said after today’s Close:
Today the S&P 500 and Nasdaq each logged in Distribution Day #5. 5 to 6 Distribution Days within 25 trading days is all that is required to tip the market into correction. IBD says that many years ago 5 was sufficient. But nowadays 6 is more commonly needed.
If we get #6 soon, Barry Taylor will say ‘Here is the exhaustion sell signal that gets the down move going’. The first Distribution day in S&P 500 (within 25 trading days) was 13 March. Let’s see if #6 comes this week (yahoo!).
James, I like your style. And agree.
We’re now sitting at the bottom of the channel. 1,841 is a critical level on the Emini – it was Monday’s Low and cyclical Support on the 135 minute chart. If it breaks, we’ll be in a downtrend on the 135 minute chart and … well, Yahoo!
I benched myself after the first hour or so of trade and 5 trades. I didn’t have a clear sense of the trend – so best to walk away. So tomorrow, looking to get my head back in the game.
Hope your Emini trading is going well.