Repeated Distribution Days: Signs of a Market Top?

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Includes: NYX, QQQ, SPY
by: Steve Ferris

Thursday and Friday, we had two distribution days in a row. That trend did not continue Monday; the indices closed lower, but by less than .5%, and not on greater volume.

Another distribution day was January 25th. On January 18th, the Nasdaq was down about 1.5%, perhaps not quite enough to qualify.

On Friday, the CBOE Volatility Index [VIX] closed above 11, and on Monday, it hit an intraday high of 11.88, then closed at 11.61, its highest close since January 9th.

As of Monday's close, the Dow was less than 100 points above its 50-day moving average. And the PHLX Semiconductor Sector Index [SOXX] has been dropping and is threatening to cross below its 200-day moving average.