TVO Market Barometer 1/28/15

TVO MB 1-28-15b

Well the hawkish Fed surprised the market today and the chain reaction caused a fairly severe shaking of the tree on high volume across all the indices. The level of down volume on the NYSE was so severe as such that it may be a sign that the selling is nearing exhaustion… So keep an eye on those potential 80/20 reversals tomorrow as stop hunters are on the prowl and prior lows will likely be tested and then some. However it happens it won’t feel like a bounce until after the fact because tuning out the noise is never easy. Just try to imagine some of the worst possible and most frustrating scenarios: We stay range bound for months; We sink to the lows of last Oct; We rally to new highs (if you’re short)… Okay now forget all that and get some sleep. -MD

For more on market volume, The TVO System, or how to trade options follow me on Twitter (@TradingLicks) and StockTwits!