TVO Market Barometer 7/8/15

TVO MB 7-8-15b

Through a host of elusive external forces, (which we can only assume begin with Greece, China and the Fed) the bears managed to pile enough weight on the scale to send the Heat Gauge soaring up to a burning +92. It was a pretty hot day, even for July, but overall volume withered downward in the heat to -15%. Even though SPY was pushed down through the 200 day MA, the low volume leaves us with the notion that big institutions did not overwhelmingly participate in today’s selling (or the NYSE halt just gave many traders a reason to extend their long lunches a bit longer). A similar volume event occurred on the 6/29 drop and the bounce that followed led us to… well, where we are right now. And unless the bulls can step up their game volume-wise, the selling of rallies may become the way of the land for the time being. -MD

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