Zeev's Turnips Patch-No Politics (ZEEV)

[lemming]

Steve,

As of yesterdays close (not distribution, as volume dropped again), there is only a one day breakdown window (today) on the DJIA. The NASDAQ breakdown window closed Thursday.

Current distribution days:

NASDAQ: 3 ( 9/8, 9/15, [9/22] )
S&P 500: 3 ( 9/8, 9/15, [9/22] )
DJIA: 4 ( 9/8, 9/9, 9/15, [9/22] )

Major distribution on the DJIA today (only) would indicate a breakdown there.

The NASDAQ and S&P500 would normally require two distribution days, the second being major distribution, to signal breakdowns there. However, since each have distribution on 9/8, which falls off my three week radar Wednesday, their breakdowns actually require 3 days of distribution by 10/5, the third being major distribution. Of course, each distribution day pushes the breakdown window further out.

Note: this is a trailing indicator, not a predictor. I have been doing some work on using low distribution as a leading indicator for declines (on the premise that the big boys like to run prices up--low distribution--before taking profits and driving prices back down to a discount--high distribution), but the jury is still out on that one. Church, family (wife and 5 children), and a day job do take time...

Got to go before Zeev calls me "Mauldin",
-David