TVO Market Barometer 9/15/17: Much higher than 2500?

Last Friday’s mix of quadruple witching and SPY ex-dividend seemed like a recipe for a sell-off if there ever was one. Instead, however, the S&P mustered up all its might and managed to close above 2500 for the first time. But the bulls must have certainly had plenty of volume behind the move, right? Well, +51% overall volume increase is quite impressive (even for op-ex), but while the Nasdaq did come in on the accumulation side, the big board fell a bit short due to lack of advancing volume.

We did take advantage of the 2500 euphoria, though, and sold our SPY calls from July for a +22% gain, bringing our overall account YTD return to +15%. TVO has now reversed back to EAGER which means that the long-awaited pullback may finally be in motion (IO has already been OVERBOUGHT since August). The bulls would need to get a serious bout of across-the-board accumulation to keep this afloat in the near term and sustain their current “market only goes up” argument. Until then, the big institutions are just not buying it. -MD

To view past positions check out our Trade History.

To find out what the indicators mean, here's our TVO System Dashboard Terms Explained.

To learn more about market volume, The Total Volume Oscillator, or How We Trade, find us on Twitter (@TradingLicks) and StockTwits!

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.