The number of stocks above or below the SMA 200 moving average is a great tool to confirm distribution.

Google (GOOG), Facebook (FB) and Netflix (NFLX) scream higher while more boring and not well know companies sink below the SMA 200. Mr Market is doing a three-card-monte trick to hide the expected market direction. Can you pick which cup the bean is under?

The indicator below also confirms poor NYSE advance and decline data.

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NOTE: readtheticker.com does allow users to load objects and text on charts, however some annotations are by a free third party image tool named Paint.net

Investing Quotes…

“Successful tape reading is a study of force. It requires the ability to judge which side has the greatest of pulling power and one must have the courage to go with that side” – Richard D Wyckoff

“The financial markets generally are unpredictable. So that one has to have different scenarios… The idea that you can actually predict what's going to happen contradicts my way of looking at the market.” – George Soros

“I buy on the assumption they could close the market the next day and not reopen it for five years” and “Much success can be attributed to inactivity. Most investors cannot resist the temptation to constantly buy and sell.” – Warren Buffet

“The key to making money in stocks is not to get scared out of them” -Peter Lynch