TVO Market Barometer 1/16/15

TVO MB 1-16-15b

The long awaited event that we thought would be a doozy, turned out to be… well, a bit of a dud. Options expiration slipped by with much less attention than usual, as seen by a nudge lower in overall volume. There was as much as 6 times greater up volume than down, however, so it appears that either the extended Jan tax selling plan has ended or the bears got a head start to the slopes just before the holiday weekend. The data is very similar to what we saw on 1/8 (the only real accumulation we’ve had since Dec), and we know how that turned out. It may be enough to get us a bounce on SPY to the 50 DMA perhaps, but at this rate the 208 level will be tough to break. Unless we get more follow through it could be another bull trap waiting to be sprung. -MD

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