TVO Market Barometer 6/1/15

TVO MB 6-1-15b

The morning gap up and the midday run up are two market moves that usually give the bulls a glimmer of hope in this kind of seemingly endless sideways market, but both were thwarted… and not to any great satisfaction for the bears either. And the simple reason for all this unproductiveness is… well, you guessed it. Lack of volume. With the Heat Gauge at zero today, neither bulls nor bears are putting in anything near a decent college effort to break out of this 2 point SPY range. And among the day-to-day volume fluctuations, our oscillator has started to decline, which means that if we don’t see some more substantial accumulation soon, the longer term up trend in volume may be in jeopardy. Because of this kind of movement, along with the fact that the time on our options trade from March has just about run its course, as of tomorrow’s close we will sell our long-term calls and wait for the next signal. The HG swing trade remains active for now. -MD

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