Most Stocks Down 2.39% Less Leading Stocks

Sure the market is healthy! Why are you worried…That was a call I had yesterday…However now we have 10 Distribution when in the past 6 were enough to tip the market. More so the Nasdaq is now well below it’s 50 day moving average and the SPY is sitting on it’s 200 day moving average.

The 200 day moving average is really the dividing line between bull and bear markets….The word Deflation is screaming as one looks at the price of crude to copper.

Mike Scott and IBD ( investors business daily group leader) did an interesting screen I today and found that the average stock in the Marketsmith database is 21.39% below it’s 52 week high. This shows that a smaller and smaller number of big cap stocks are preventing the major averages from looking even worse. This is typical late cycle action as the market gets narrower and narrower. I see little reason to be taking positions right now. Cash is looking much better!

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