As the S&P 500 shies away from its 50-day moving average we’re keeping an eye on sell-volume to see if it dries up.

Thursday’s market drop was too close to call to tell us if the sellers are stronger than buyers. We need to wait it out for more evidence.

We have a sense that the market has a good shot of rallying in the end of the year given a predominance of high buy-volume days over the last couple of weeks.

These high buy-volume days show institutional support for recent levels.

But we won’t change our bias flag until Leadership from stocks trending above major moving averages takes place.

Obviously, that 50-day MA is a barrier for the major market indexes.