Both can be correct. The usage depends on intended meaning.
Our current guide (version 4) says:
RIGHT: The investor DISTINGUISHED BETWEEN trends AND fads.
RIGHT: There is a DISTINCTION BETWEEN trends AND fads.
SUSPECT: The investor DISTINGUISHED trends FROM fads.
WRONG:
distinguished X and Y
distinguished between X from Y
distinction between X with Y
distinction of X to Y
X have a distinction from Y
You might also want to check out this discussion:
distinguish-x-from-y-t6950.html?hilit=distinguish