S&P 500 opened two times BIG gap down (1.2%-1.3%) within the last 3 days! Something which has not happened neither during 2015 and 2016 corrections nor during XIV imploding in february this year. This is spectacular situation as neither of those gaps were completely filled. This signals that the downsloping trendline is indeed very strong. Moreover spoos have bounced today from fibonacci 76% retrac. This is pretty low for fibo standards. The trendline also hold very tightly. All of the major equities indices are below 200-SMAs
The plunge could not be stopped by companies reporting better than expected earnings. This also shows strong downward pressure. Comments from companies like TXN don't help either.
High Yield bond spreads gave up and went high which translates into de-risking mood probably.
Here I provide some totally not significant market members insights:
> Smart Money have been selling since february and now the move intensified,
> HFs fear of being closed down as they provided horrible results this year (now, they may have incentives to bet on eveything that moves even if it crawls losing even more money in the process) with their favourite FANG stocks dropping like a rock,
> speculative bets on treasuries are being squuezed out of the all-time low shorts (this will intesify rates moves downward)
PS. Traders are waiting for mysterious Plunge Protection Team to deliver them from evil as everything seems lost
The plunge could not be stopped by companies reporting better than expected earnings. This also shows strong downward pressure. Comments from companies like TXN don't help either.
High Yield bond spreads gave up and went high which translates into de-risking mood probably.
Here I provide some totally not significant market members insights:
> Smart Money have been selling since february and now the move intensified,
> HFs fear of being closed down as they provided horrible results this year (now, they may have incentives to bet on eveything that moves even if it crawls losing even more money in the process) with their favourite FANG stocks dropping like a rock,
> speculative bets on treasuries are being squuezed out of the all-time low shorts (this will intesify rates moves downward)
PS. Traders are waiting for mysterious Plunge Protection Team to deliver them from evil as everything seems lost