TVO Market Barometer 7/13/15

TVO MB 7-13-15b

Today’s volume action was virtually a match to Friday’s numbers except in one very crucial detail; Overall volume is finally on the rise. This is what the bulls were hoping to see since early this month, however, with only a 3% bump for a follow through, it’s likely that at least a SPY gap fill back down to 208 is in order before moving on to higher territory. Does this round of accumulation have conviction, or do we just chalk it up to a gap induced short squeeze? Some bearish volume signals thus far suggest the latter (a negative HG on Friday accompanied by negative overall volume), and even though TVO has reversed direction for the time being, the slowness of the move has negated our long signal… which would turn out to be quite timely if we fail to clear the 50 day MA within the next few days. -MD

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