TVO Market Barometer 7/30/15

TVO MB 7-30-15b

For the folks who earnestly bought the post-Fed bump on Wednesday, their stop-loss orders (just below SPY 210) were no match for yet another (but much quicker) shakeout this morning. Even though SPY recovered back to consolidating near the 211 pivot, today was not the volume confirmation the bulls were hoping to see after Tuesday’s highly scrutinized bounce. Conversely, the HG only warmed up to +5, and with overall volume sinking -5% the bears managed to accomplish very little, so one might declare today pretty much a stalemate. Many green outside and inside candles were abound, though (if candlesticks are your thing), but yet folks are still calling for higher (or lower) closes in order to be “convinced” of the market’s direction. With our current swing trade we have an entry and an exit signal that’s already predetermined by forces beyond our control… so the wind will blow the way it will, and only those that can raise and lower the sails at the right time can stand a chance to weather the storm. -MD

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