Mounting evidence for our sell bias tests our patience.

We’ve been bearish for a couple of months as distribution days, where a down day in the market is accompanied by volume exceeding the previous day, has set a tone.

In the last couple of weeks we saw four distribution days on the S&P 500, which indicates institutional players have been unloading some of their massive portfolios to play defense.

In the meantime, price action has drifted sideways on most of the major indexes and sectors. While the churning on higher than average volume is considered bearish, the longer it takes without a sell-off, the lesser the chance of it.

Simply put, if it doesn’t sell it rallies.

A sell-off would put the technical support areas of the 50-day moving average in lay for the major indexes. Most indexes and sectors have now undercut or tested their 20-day moving averages.

Looking into specific sectors, last week we saw the Healthcare Index ($HCX) close below its 40-week exponential moving average, a key gauge for the long-term trend. We have our eye on it as potential leadership in a correction.

The bullish argument is bolstered by a number of successful growth stocks, such as Apple (AAPL), breaking out to new highs. Despite a number of slumping former highfliers, such as Google (GOOG), we can’t discredit the presence of other leaders that still command.

This week’s main event will be the employment report set for release Friday. A real correction likely won’t set in until we see sell-offs on bad and good news. The market has successfully shaken off about everything so far in this bull leg. But remember, it’s not the news that’s as important as it is the market’s reaction to it.