TVO Market Barometer 7/17/15

TVO MB 7-17-15b

Slowly but surely, distribution is starting to creep into this recent parabolic rise (who told you markets never go straight up?), last Wednesday and then again on Friday. Most of the hidden selling is taking place beneath the surface of SPY, while the mighty NASDAQ is holding out and standing tall, but the two can’t be at odds for very long. Keep in mind that our algo charged market has been very tidy as of late, and surely the bears have their radar honed in on the SPY gap just below 211.50 (and possibly the huge one just below 209), so the bulls have their work cut out for them. Consolidation is the next order of business and if they manage to keep it steady for the next few days, it may just save us from plunging too far south. -MD

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