The major indexes all experienced heavy selling Tuesday, putting the 50-day moving averages in play as support.
Bears have been waiting a long time for a significant correction. The fact that the day marked Distribution, where volume outpaced yesterday’s, suggests institutions are taking cover.
We’re going with a Yellow Flag Buyer’s Caution bias in light of this selling. We want to pay close attention now to how recent leadership holds up to better guage the prospects of this being a mild pullback or something more significant.