Market timing: is the market supporting longs right now?
Breadth can't tell you when institutions are quietly selling — the IBD distribution-day model can. As of Nov 6, 2026.
As of the Nov 6, 2026 close, the market-timing read is “Market in correction”, with 9 distribution days on the count and no recent follow-through day; 33% of stocks are above their 50-day average.
SPY is below its 200-day, or heavy distribution has pushed it below its 50-day. Protect capital and wait for a follow-through day to confirm the next rally.
How to read it. A distribution day is a session where a major index (SPY or QQQ) closes down ≥0.2% on heavier volume than the day before — a fingerprint of institutional selling; it stops counting once the index closes 5% above it. Four or more in a ~25-session window puts an uptrend “under pressure”; six or more below the 50-day, or any close below the 200-day, signals a correction. A follow-through day — a strong up day on rising volume a few sessions off a low — is the classic signal a correction's bounce has legs.
Trade with the market, not against it.
Pair this read with the daily setup board — the strongest breakouts work best in a confirmed uptrend.
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