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Can One Company Screw Up The Market? Market Volume Update.

close up of human hand

Meta (FB) took a dive on Thursday and took the rest of the market down with it. But is it really possible for one company to do so much damage? Can one groundhog be held solely responsible for an extended winter?

Well, yes and no. I can’t speak for the Groundhog, but.. Yes, institutional investors have FB high up in their portfolio and it’s bound to ripple down to other names as they reallocate their holdings. On the other hand, overall volume fell -5% in the session, so… No, the entire market is still very much intact and it’s starting to look like distribution days are in the rear view mirror for now.

TVO, our long term volume oscillator, reversed direction and is now heading up towards positive values. The reversal did not, however, fill the criteria for a long term long signal, so there’s a possibility that SPY will drift between the 200 and the 50 day moving average until we get a few more accumulation days under our belt. If that’s the case, TVO could drift back down again and could potentially trigger a long signal in the next week or two.

We said last week that the ride could get bumpy, but then bounces of this magnitude are never easy. With Amazon (AMZN) and most of the big earnings calls out of the way, all eyes are on Friday’s job numbers with a Next Day Move UP day forecasted to take us into the weekend. – MD

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