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Strategies & Market Trends : Classic TA Workplace -- Ignore unavailable to you. Want to Upgrade?

To: Paul Shread who wrote (22985)	11/28/2001 5:18:41 PM
From: Doo	Read Replies (2) \| Respond to of 209892

Well, as you know, I only track "distribution days" according to the requirements set out in HTMMIS, along with some counting techniques or refinements that some friends of mine backtested over something like 20 years of data. Yesterday was a distribution day, no question about it. 5 day intraday high with a close lower or virtually unchanged on the indices, with volume higher than on Monday. First one we've seen in a while. There have only been 3 or 4 on the indices since the Sept. low was confirmed on price and volume, with sentiment extremes. As far as today is concerned, I try to ignore the fact that a debacle like ENE occurs and count the volume anyway. But, I think it best to just keep that in the back of one's mind, particularly since it is so extraordinary and the other indices didn't show an increase in volume. However, one of the tricks in finding IT tops with price and volume is that the initial decline following distribution days can be on declining volume since the selling was going on as the market moved up. Hard to really tell much from such a decline because most of us would view it as bullish that the volume subsides on such pull backs. The first rally attempt after the pullback is really the tell. It can fail in a variety of ways. Anyway, IIA sentiment numbers tomorrow should show yet another pop toward that the 50% Bulls, 25% Bears level that, although arbitrary, is a pretty good level to watch for significant signs of distribution and failed rally attempts. Does that make sense?