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TVO Market Barometer 3-13: Which gap will fill first?

Anyone who has ever watched the Apprentice knows (Spoiler Alert) that every week in Trump Tower, you could count on someone getting fired (it was the best part of the show) and now in the White House, things haven’t changed a bit. And on Tuesday the consensus was that the market basically reacted as if they’ve seen the show a few times too, but on the big board institutional investors were clearly motivated by something, as distribution took hold.

TVO and IO (our volume and issues oscillators respectively) are somewhat at odds, with issues at very overbought and volume showing oversold. The two tend to reflect market sentiment, but at different time frames… and both have now reversed and are heading in opposite directions.

TVO is heading up towards positive values, which favors the bulls in the long-term, while IO seems to have hit a peak and is now heading down. Looking at SPY from a chartist’s perspective, and just like you can count on more folks getting fired, (here comes another spoiler) both gaps will soon be filled, but it looks like the 275 one will fill before 280. -MD

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