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Is Distribution Setting In On The SPY Charts

|Includes:SPDR S&P 500 Trust ETF (SPY)

This post was originally written on February 25, 2013 at http://www.optiontiger.com/spy-charts-distribution/

The SPY Charts on Feb 25, 2013

Today, mostly for reasons related to the undesirable outcome in Italian elections, the market seemed to have given up all the morning gains.

Notwithstanding, the markets seemed to be grinding up in the last few days leading up to a big day on Friday to close the week. The SPX was at 1518, and this morning it touched 1525.

But an analysis of the SPY Charts in the last few days tells us there is some distribution happening.

Please check chart below and the last few days circled in yellow

SPY

1) The down days have had large volume. Possible smart money selling.

2) The up days have no volume. No smart money buying, only retail buying.

3) RSI showing weakness

4) On Balance volume clearly showing money coming out the SPYs.

It's time to be watchful, especially with the Sequestration decision right around the corner.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Disclosure: The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Stocks: SPY