Light Buying

The market is off to a decent rally for the first week of May.

Problem for Bulls is that the ends and beginnings of months usually experience buying as funds tend to add to their holdings.

The fact that it happened on light volume takes nothing from the dominance of sell volume we’ve seen on the major indexes. In the last couple weeks Distribution Days on the major indexes, where volume exceeds the previous day on a decline in price, have weighed heavy for our current Sell bias.

Though we’re bearish we can’t say the market will just sell-off from here. Tops can take time, and are often seen as a process in retrospect.

So should we see new highs in the major indexes we’ll analyze carefully to discern it’s ability to sustain them.