TVO Market Barometer 8/28/15

TVO MB 8-28-15b

Since last Monday, the market has been staging a valiant reversal that many folks thought was not possible due to the magnitude of the prior week’s blood-letting selloff. From the perspective of volume, however, even though SPY has climbed over 10 points off the lows, the massive down-volume vacuum created has yet to be filled by hungry institutional buyers and as TVO (our long-term volume oscillator) continues to fall, the bulls’ appetite is steadily waning. For the bears, though, this cold dish may be right on time and just the kind of rally they love to sink their teeth into. Prior lows may very well be tested, and if you were cool enough to survive the volatility roller coaster thus far, hang on to your hats because with a host of catalysts on the menu this week (Beige Book, Unemployment rate, etc.) the ride is just getting underway. -MD

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