TVO Market Barometer 12/2/15

TVO MB 12-2-15

Call it reactionary selling, price resistance, Beige Book mania or whatever you like. Today’s action was one of clear distribution and the shorts that were certainly waiting in the wings had their day, and it seems like the worst is over… or is it? The selloff raised our Heat Gauge to a sizzling +60, which is not quite hot enough to go long with a short-term SPY options position and could mean that more fire is yet to come. TVO continues to climb, however, so the shakeout could be quick. If you blink (or sleep through the open) you just might miss it. -MD

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