TVO Market Barometer 8-06: Accumulation is a 4-letter word.
The low volume run-up continued on Monday for the third straight day. This time, however, the Nasdaq took the lead (as it’s known to do), and with a 10% increase in volume, logged its first accumulation day this month.
It’s fairly likely that a test of SPY 286.63 is already in motion. Bears that are waiting to sink their teeth into this whole resistance thing, may want to rethink their strategy (or re-read the part above where it says “accumulation”). FOMO can be a pretty harsh 4-letter word when all is said and done.
Both TVO and IO are heading up and both have quite a bit of room before the oscillator can potentially get maxed out. Whether or not the increasing FOMO can soon bury the needle, bears can likely expect a shakeout this week (as it’s known to do after an accumulation day)… but if you blink you just might miss it. -MD
Sentiment: EAGER – Markets are in accumulation mode and big institutions are buying at a slow and steady pace.
Volume: 2% – Today’s volume was higher than the previous session.
Real Feel: CHILLY – Bulls were in control of the session with substantial selling under the surface.
Cycle: OVERBOUGHT I – Retail investors are confident and slightly overweight 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 -Â The probability that SPY will close positive in the next session is 52%.
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