TVO Market Barometer 1/14/15

TVO MB 1-14-15b

We’ve been logging steady distribution over the last 3 days (including today), but we have yet to see that last gasp capitulation type selling… Which means that it can get much worse before it gets better. Last Thursday’s glimmer of hope just wasn’t enough to fuel the fire and today’s bounce will inevitably renew some of that hope for the bulls. Lack of up volume can and will snuff out the flame, however, and SPY 198 and it’s 200 dma are just a stones throw away just aching to get tested… And just in time for the next big market catalyst: A double whammy of Consumer sentiment and options expiration this Friday. Yes, it doesn’t feel like the 3rd week of Jan (so it may catch some folks off guard) and with a holiday on Monday this one could be a doozy. -MD

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