TVO Market Barometer 9/2/15

TVO MB 9-2-15b

Welcome to the bounce that a week ago everyone wanted, but now no one wants. Today’s so-called “bullish” hammer on SPY was promisingly cool (-9 on the Heat Gauge), but overall volume dropped a whopping -15%, so the bulls aren’t exactly piling on in droves at this point to try to take this thing higher. The high up to down-volume ratio means buyers have filled Tuesday’s selling void and have taken control, however, the lack of overall volume means the big boys are still on the sidelines. Are they waiting for Friday’s Employment numbers, for China to straighten out, or just for more rate hike clues from the Fed? Well, one thing for sure is that with this kind of bearish volume sign, we won’t be waiting around much longer for them, so on tomorrow’s close we’ll exit our swing long position… which turned out a lot quicker than expected, but when volume talks it’s best to pay attention. -MD

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