Market Update

There's some decent distribution going on today, there's two possibilities sticking out in my head, 1) is like the last uptrend where we had a day or two of accumulation, a move higher for 2 days and then a new low and a few more days of accumulation and then a rally, which was the last rally we had in this consolidation area on the daily chart. 2) Would be this is just normal distribution of the trend.

The volume and flat trading range are hallmarks of accumulation and distribution, in this case distribution.

 DIA 1 min distribution with a slight area of accumulation, perhaps an intraday move higher coming.

 DIA 5 min in a slight leading negative divergence.

 DIA 10 min mostly in line, 15 min harts are in line so far.

 QQQ 1 min, negative divergence/distribution-remember it will always start on the short term charts first and work its way to the longer term charts like 10-15 min or longer.

 QQQ 5 min leading negative divergence.

 QQQ 10 min negative divergence

 SPY 1 min negative divergence

 spy 5 min negative divergence

 SPY 10 min negative divergence

 SPY 15 min is in line

Here's the SPY 5 min 3C depth chart, you can see the crest/distribution has picked up quite a bit today, however it is still below previous tops and this was a stronger accumulation cycle so I would expect the crest to be deeper then past rallies and the distribution in to them.

Just because of the flat trade and neg. divergences, I'm considering taking a little off the table, but it is more in hopes that I may be able to buy the positions back at better prices on a pullback. So far there's now pullback, just a flat range. The bulk of my position I would still hold on to. I haven't made a decision about this as of yet, just considering it. Each person has to consider the profits they have and whether they want to start to lock some in. I have found that phasing in and out of trades, just lke Wall Street does, has kept me at a profit and allowed me to lock in a profitable trade, no matter what may happen to the last 20 % of the trade I still have on.