Last week I mentioned that the distribution days were beginning to stack up and today we saw a continuation of this sell pressure. Today’s distribution volume breakdown below key horizontal support suggests even lower prices are yet to come.
There are multiple strategies for navigating a market like this which you can read up on here. For me personally, my tight stops did exactly what they were supposed to today; they locked in profits. Now I am sitting on a large cash position and only holding the absolute best stocks (Tiffany – TIF – in this case). Moving forward, it is all about finding a great place to invest my cash when the market ultimately turns.
Charts are below. Regardless of where the market goes from here, your portfolio can be ready to profit. Keep it frosty out there! 
| Trend | Nasdaq | S&P 500 | Russell 2000 |
|---|---|---|---|
| Long-Term | Up | Up | Up |
| Intermediate | Up | Up | Up |
| Short-term | Down | Down | Down |
(+) Indicates an upward reclassification today
(-) Indicates a downward reclassification today
Lat Indicates a Lateral trend
*** I’m simply using the indices’ relations to their 200, 50 and 10-day moving averages to tell me the long, intermediate and short-term trends, respectively.
