Friday the 13th came and went, and to the chagrin of most superstitious crash-calling bears, the market roared higher. On the volume side of things this week, however, Thursday did quietly log the first distribution day we’ve had on the big board since the first week in September (Both TVO and IO have now reversed towards zero).
In the last 2 weeks, Next Day Move correctly called the move in SPY 7 out of 10 times (and it didn’t just only go up), so volume action appears to be a pretty good barometer for the current market environment. Overall volume did fall -6% on Friday (mostly due to the Nasdaq), which suggests that the end-of-year benchmark chasers are taking a breather for the time being. Disappointed folks from the 13th may still get another crack at Armageddon, though, as Friday the 20th (yet another freaky Friday… options expiration) is only a few sessions away. -MD
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