TVO Market Barometer 10/20/15

TVO MB 10-20-15b

As SPY looms higher and higher back towards the 200 DMA, the market internals (namely volume) have been shifting in their own direction. And with our Heat Gauge reading at zero for 3 days in a row, that direction in the short-term doesn’t look to be too firmly established. Overall volume has been declining, but today we got a slight boost that many folks may interpret as a last gasp before giving into what they call the “tired market” theory. As far as TVO is concerned, values above +3.0 are in overbought territory (notice the green on the dial), and a sell signal (not a short) is likely at this point. Earnings are the talk of the town at the moment, so SPY may have a few tricks up its sleeve before all is said and done. -MD

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