TVO Market Barometer 5/26/15

TVO MB 5-26-15b

The trading day started off with not so bad economic data, but the futures had already decided the fate of today’s market by leaving it to open right at the edge of the SPY 212 support level. As we mentioned last week, this where all of the so-called smart traders place their stops to protect themselves from losses just in case the breakout is “not for real”… And when these stops get taken out en masse the sudden dip starts an unstoppable chain reaction of head scratching, which then leads to doubt, soon followed by panic, and then a search for probable cause. There always has to be some reason for the disaster as comfort only seems to come about when blame is appropriately placed. Technical reasons just don’t satisfy the media nor the casual investor, so we must endure yet another angle as to why the market cannot seem to handle miniscule future rate hikes and endless financial tales of woe from Europe. Then the dust settles and we buy it all back again and the cycle continues. -MD

For more on market volume, The TVO System, or how to trade options follow me on Twitter (@TradingLicks) and StockTwits!