TVO Market Barometer 1/29/15

TVO MB 1-29-15b

So as highlighted by TVO in Wednesday’s post, the 80/20 was the trade of the day pulling off an impressive gain of nearly 1% on SPY. Although up volume moderately out weighed down, overall volume has left us at a stalemate from yesterday, so we are not out of the woods yet. The bulls will be betting that things will start pick up steam as we head back to toward the 50 DMA and it does look like momentum is in their favor (And the bears now have the makings of a H&S on the VIX to deal with). But will we stay above the magic line this time? Last Thursday’s break through had some power and failed but with today’s oversold bounce the bears are getting tired and may not have anything left to keep things down. Either way we can expect a little more zigzagging before we head for clear skies. -MD

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