TVO Market Barometer 3/24/15

TVO MB 3-24-15b

The shaking of the tree, which has been an age-old Wall Street ritual, always manages to take folks by surprise… which is likely the reason why it’s so effective (and the reason why we don’t use stops). The weak hands will need to fall by the wayside for markets to progress, and from last week’s rise there are surely plenty of them around with stops in abundance just below the “obvious” support levels, namely SPY 209 and NASDAQ 5000 (both of which closed below their respective levels, so the shaking has apparently already begun). Overall SPY volume sank a little, but with a nudge higher volume on the NASDAQ, a slightly bigger fall may be in store. As TVO moves toward positive values, we’ll continue to ride it out, but if the oscillator slips back the other way, we could get another long signal… which is when the fun really begins. -MD

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