The Real Stock Market - Distribution in Charge
Let's review the real stock market, and not the Wallstreet marketing tools like SP500 and Dow Jones Industrials. The truth is 'distribution' has been active for the last 18 months.
After a period of distribution and major market players have sold all they are going to sell, the major market players will either load up on 'shorts' for a down swing or wait for a time to re accumulate 'longs' for higher prices, as this is one week before US elections you can understand that the major market players have yet to decide which way it will go.
NYSE (1800 to 3000 stocks): No new highs, sideways action, supply keeping the market down.
Russell 2000: No new highs, sideways action, supply keeping the market down.
"Anyone who buys or sells a stock, a bond or a commodity for profit is speculating if he employs intelligent foresight. If he does not, he is gambling." ~ Richard D Wyckoff
"It is much harder to sell stocks correctly than to buy them correctly." Because of the emotional aspect of trading, if a "stock went up, the average investor would hold because he wants more gains – he's exhibiting greed. If the stock declines, he also holds on and hopes the stock will come back so he can at least sell and break even – he's hoping against hope." ~ Bernard Baruch
"People somehow think you must buy at the bottom and sell at the top to be successful in the market. That's nonsense! The idea is to buy when the probability is greatest that the market is going to advance." ~ Martin Zweig (The inspiration behind a number of Martin Zweig's methods came, from Jesse Livermore).
"A market is the combined behavior of thousands of people responding to information, misinformation and whim." ~ Kenneth Chang
"Don't try to buy at the bottom and sell at the top. It can't be done except by liars." ~ Bernard Baruch