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TVO Market Barometer 6-28: It’s all over but the volume.

Thursday’s reversal had all the ingredients of a successful bounce… a quick undercut of previous session lows, a strong close (and even a hammer or 2), and the reclaiming of key support levels.

One thing was missing though… Volume. Overall volume fell -6%, so big institutions have yet to put their stamp on this one.

That’s not to say that volume has been lacking lately, as last Friday’s +66% jump in volume was plenty enough fuel left to keep things moving for a while. It’s just that the vacuum on the accumulation side created by recent selling remains unfilled for the time being.

This Friday is the end of the month/quarter so we’ll see if some last-minute window dressing can give the bulls their much-anticipated early fireworks display. -MD

Sentiment: EAGER – Markets are in accumulation mode and big institutions are buying at a slow and steady pace.

Volume: -6% – Today’s volume was lower than the previous session.

Real Feel: CHILLY – Bulls were in control of the session with substantial selling under the surface.

Cycle: OVERSOLD I – Retail investors are uncertain and very light in their holdings.

Portfolio: BUY – The market is healthy and it’s a good time to contribute to long-term investments.

Next Day Move: SIDEWAYS - The probability that SPY will close positive in the next session is 52%.

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