TVO Market Barometer 5/19/15

TVO MB 5-19-15b

The powers that be sent a warning shot across the bow today, telling the SPY breakout crew that these uncharted waters may not be as welcoming as they seem. The TVO Heat Gauge shot up to +37, quickly filling the so-called volume-less void of the past several sessions. Interestingly though our trusty oscillator has shifted towards positive values (back to -2.6), as if being guided by some invisible bull force… How is this possible? What’s the secret weapon? Well, quite frankly… Time. Because no matter how much the shorts can throw at this point, accumulation of quiet up-volume (along with lack of down-volume) over time is still volume nonetheless, and has built up enough momentum now to give this voyage a second wind. So for those folks looking for more volume, the effect of time may not always be easy to see, but can end up packing quite a punch. -MD

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