TVO Market Barometer 3/10/15

TVO MB 3-10-15b

Now that the 50 day has been washed away like a line in the sand, the last refuge of stops just below our previous breakout point (remember “Say Goodbye to SPY 205?”) is no longer a safe haven… and depending on how many get taken out, there’s a nice little gap around SPY 202 just aching to be filled. The up/down volume ratio pushed about as far as it can go to the downside, but we are still missing that last gasp in the form of an extreme overall volume surge, where longs just can’t hold out any longer and throw in the towel. TVO into the negative numbers means that not only are we looking to cover our shorts, but we’ll also be on the alert for a long reversal. In the meantime, hold on to your hats. -MD

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