TVO Market Barometer 6/24/16

TVO MB 6-24-16

On Friday the market plummeted after a triumphant rise, and even though we all heard the boy who cried “brexit” many times over, many folks just didn’t seem to take heed. With a +116% increase in overall volume, though, it seems the message is now loud and clear. Just how significant is that kind of volume boost? Here’s a list of every session (according to TVO) over the last 10 years where volume rose more than 100% in a single session.

Over 100% volume rise:
11/30/2015 183%
10/15/2014 123%
6/4/2012 152%
11/28/2011 131%
11/10/2011 694%
11/2/2011 127%
10/19/2011 455%
10/7/2011 328%
10/3/2011 158%
9/22/2011 227%
9/12/2011 535%
8/22/2011 192%
8/9/2011 196%
8/3/2011 269%
5/31/2011 266%
11/29/2010 144%
12/28/2009 108%
11/30/2009 106%
8/21/2008 137%
5/30/2008 113%
5/27/2008 110%
5/16/2008 113%
5/13/2008 145%
11/27/2006 197%
5/24/2006 109%
9/16/2005 158%

After the last occurence on 11/30/15, the market promptly sold off in a big way until February of this year. The time before that was the now famous “V” bottom (when TVO first came on the scene) that started a multi-month rally which led to a SPY all-time high. If you’re game to do a further in-depth study, you’ll soon find there are just about as many similarities as differences among the events (both technically and fundamentally), making a quantitative study quite the challenge. Without even getting into that, one thing is fairly certain to be seen… a big move is in the works. As far as direction, only time (and volume) will tell. -MD

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

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The indicator descriptions in the above graphic represent general market sentiment and are not the actual TVO System signals. To view today's active signals and options trades, please . Not a Member? Join us.