Back on 12/26 we stated that 2014’s Santa rally was built like a house of cards in terms of volume. The cards have indeed begun toppling, but the TVO barometer reached a point of equilibrium last Friday, giving the Market a chance to take a breath. So the question is… was there enough of a distribution punch to keep things going in a downward direction? Once we reach Limbo on the dial, the odds favor that a reversal will be close at hand, but SPY still has a gap to fill and 202 is looking mighty close. At the very least a few days of confusion and regrouping are in order. -MD
The TVO System results for 2014 are in and will be posted soon, so stay tuned!