My Trading Licks

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%.

Want to read more? Join our list. It's free.

For the full rundown on today's active signals and options trades, please log in. Not a Member? Join us today.

To view past positions check out our Trade History.

To find out what the indicators mean, visit our Market Volume Volume Barometer.

To learn more about market volume and how we trade, find us on Twitter (@TradingLicks) and StockTwits!

The indicator descriptions in the above graphic represent general market sentiment. The actual TVO System signals and trades are listed below in the Members Area. To view, please Login. Not a Member? Join us.