On narrow range days like Tuesday, most traders fight the urge to snooze at their desks (especially after a long weekend) as boredom kicks in from lack of price action. Over here at volume desk, however, it is days like these that keep me awake because this is where the “real nitty-gritty” of market action lies. The seemingly innocent SIDEWAYS move on SPY was actually volume packed (+11% overall) and masked a distribution day on the big board (last one was 2 weeks ago), with the Nasdaq not too far behind.
Does this mean that rough waters lie ahead and Amazon is now raising the red “1000 flag” saying it’s time to batten down the hatches? A little churning, as it’s called, is quite common as big institutions reposition themselves while the market starts digesting a new range. But that doesn’t stop the top callers from finding any excuse they can to call it a day (perhaps they’re just bored). TVO is still currently in a bullish range (0-3.0), so it’s not time to start loading up the lifeboats just yet. -MD
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