TVO Market Barometer 7/15/16

TVO MB 7-15-16

Volume sank down in Friday’s session, as the rally off the June lows is starting to wind down into what’s looking like a breather before another leg up. Since our TVO long signal on 6/28, SPY has gained almost 5%. From an historical perspective, however, when TVO calls the bottom that kind of market gain is near the low end of the spectrum of how far this thing can actually go. The nemesis of both bears and bulls? A high tight bull flag, which gives the bears a low risk/reward on the short side and leaves the bulls (who missed the dip) high and dry waiting for that elusive second chance of getting in… So everyone has to keep on chasing. -MD

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