Found this SNEAKY dark pool print at the last hour of day! It is likely MASSIVE institutional selling into the Easter long weekend. This ETFs top holdings are the market leaders MSFT AAPL AMZN GOOGL and FB. Look at that end of day volume spike! Please rest well and be mentally prepared for next week.
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For those who do not know, this is a possible consequence of dark pool selling:
"...stock prices on exchanges may not reflect the actual market. For example, if a well-regarded mutual fund owns 20% of company RST stock and sells it off in a dark pool, the sale of the stake may fetch the fund a good price. However, unwary investors who have just bought RST shares will have paid too much since the stock could collapse once the fund’s sale becomes public knowledge." From investopedia.com/articles/markets/050614/introduction-dark-pools.asp
This means that potentially a market leader price collapse could ensue sometime in the following days as this final hour dark pool sale comes to realization.
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Keep in mind that previous red candles of this magnitude generally led to a price increase for a few hours, followed then by a much larger decline.
@supere, Unless the underlying equities in the ETFs also dump, shouldn't this just snap right back?
supere
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@MisterBurkes, Quite the opposite i think. An ETF selloff at this time would be a disaster for the underlying equities. This is the problem with so many people just passively investing in ETFs without any research whatsoever.
MisterBurkes
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@supere, Hmm, what do you think of my idea on XLI (I spotted the same thing as you here but huge buy volume instead)?
Imdmagic1
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@supre ...this baffles me. how can such large sale volume result in price spikes?
Thank you, @supere. Ashoka the Great.