Quick note about today’s news, and last week’s pattern…

Last week we tracked a growing pattern of intraday distribution. It culminated in the two-day rally and failure that took price sharply lower into the weekend. It is the most glaring re-positioning among strong hands that I’ve seen in some time.

Meanwhile, Mueller has delivered his “Russia-gate” report, and it’s apparently not the damning conclusion so widely anticipated for so long. Some sort of relief rally tonight is likely.

Could fear of the worst have been responsible for last week’s distribution? An entire week of big money, strong-handed selling into strength? I’m doubtful. That’s not the pattern that I see, but it has a stop — two consecutive closes above last week’s highs, at the latest. Otherwise, retesting last week’s highs or only attacking them would have no effect on the distributive pattern. The distributive pattern should have an effect on any rally.

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