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You call it chop. TVO calls it consolidation. – TVO MB 3-05

Tuesday’s session was choppy and also what many folks would call unproductive, as far as price. Volume, on the other hand (which always has something up its sleeve), went mostly for the bears, as the drop at the open nearly brought our Heat Gauge into the SWELTERING range.

Whether the huge spike of down volume was the total extent of the damage or a warning shot of more to come, remains to be seen.

TVO has resumed its downward direction, but we’re just above the 0 to +3.0 “healthy market” range. As long as we remain in that range (which now just happens to coincide with staying above the 200 day MA), it’s risk-on for the bulls.

In the meantime, expect some more chop, or as it’s known in more technical terms: consolidation… which we all know is indeed quite productive in more ways than one. -MD

Sentiment: HUNGRY – Markets are accumulating at an accelerated rate and big institutional buying is heavy and aggressive.

Volume: -12% – Today’s volume was lower than the previous session.

Real Feel: BALMY – Bears were in control of the session with considerable buying under the surface.

Cycle: BULLISH I – Retail investors are confident and slightly overweight in their holdings.

Portfolio: HEDGE – The market is over saturated and long-term investments warrant some protection.

Next Day Move: SIDEWAYS - The probability that SPY will close positive in the next session is 54%.

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