.

More than likely we’ll find out if my title is accurate as we’re either going to break out to new highs tomorrow or reverse hard in my opinion. I believe the latter to be the case and I still hold a cautious view on the markets due to some very weak RSI action. Essentially the long positions I own are at a reduced position size and I’m not initiating new ones until either we break out to new highs or we complete a sufficient pullback. (click on image for larger chart)

2 areas of strength I noticed on my scans are:

Pharma: ARIA ENZN EW VRX AMRN

Financials: FII NYB NTRS USB WFC

Should the market move higher these will become areas to focus on.

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One Response to “Distribution Going on Behind the Scenes”

  1. Pharmas Lead The Way | Satwaves Pro Edition Says:

    […] Live ChatPharmas Lead The Way12/19/2010 By Jeff PierceOn Thursday on my blog I mentioned that bio-techs were showing  relative strength and could be poised to move higher. While I am seeing a number of […]

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