TVO Market Barometer 5/20/15

TVO MB 5-20-15b

The Fed is apparently putting the rate hike on hold and the bullish half the market seems to think it’s a good thing, while the other half thinks… well, that it’s also a good thing. From a volume perspective, bulls and bears were split virtually right down the middle as our Heat Gauge cooled down to a breezy +5 with overall volume also simmering down for yet another session this month. As we mentioned, the bulls still have time on their side, but surprise bear attacks can come quick and without warning. If breakout longs are following the rules correctly, then there’s likely a sea of stops just below SPY 212 that are easy prey for the stop hunters (who have their own rules and agenda). So if we indeed have our post-Fed shakeout, do we get ready to BTFD? It all depends on whether you can stand the heat. -MD

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