Algorithm Trading Reigns Supreme .. Look At This Chart !

SPCFD:SPX   S&P 500 Index
497 26
Trader's are often put out to pasture making just one simple mistake.
They hold position overnight.

Yesterday's melt up in the S+P 500 to 2940 Resistance,
has been immediately followed with a "melt down" the following morning.

Why ?

The in the know types are justifying this mornings sharp market selloff,
by pointing the the "Inverted Yield Curve " overnight,
as the 10 Year Bond has once again traded down to 1.60%,
a harbinger of recession on the horizon.

Now if you wanna believe all of that,
turn up the sound to CNBC,and find misery in talking head company.

The truth is that volatility as measured by the VIX ,
and those multi billion Algorithm trading black boxes,
who initiate mega billion $ trades on the Buy Side or Sell Side,
at the drop pf a hat
They simply turn on a dime. In mass.
Overnight even.

What has really changed ?
Absolutely nothing really fundamentally.

So don't be surprised if some of these traders,decide enough is enough,
and put down their trading accounts for the safety of money market cash,
and perhaps a round of golf before the summer ends.

This is crazy.
Manipulation has never been more obvious and real tangible detriment to all then right now.
Choose your tonic carefully.
Hopefully it will be there, when you come back to finish your drink.

SPX 2881.00


Very insightful, thank you UNWIND.
The_Unwind mschooler

Thanks Boss.
Rediculous amount of whiplash...tough market. :/
The_Unwind David_Scott

Casino odds at best right now.
Trend reversals galore.
Better to sit this one one I think then to risk a potential big loss,
on either side of the trade.
+1 Reply
I wonder if we get a short squeeze tomorrow morning. That may be too obvious though.
Im betting on 2640 very sooon

Ok Boss. Duly noted.
You're in the market prediction business now.
xCal The_Unwind
@The_Unwind, lol I don't do this for a living. This is fun for me. I get my licks off the rush. I was suprised by the move up like that but it felt fishy. I also read someone elses chart the day before who actually predicted it. I don't really know as much as you or anyone I follow but that's the reason I follow all of you. My talent is picking the right people to follow. I bounce ideas but that's all. If you look at my charts I don't really explain much. I just draw lines based on what I've read from others that made sense. You are one of the most intuitive and definitely my favorite. I say 2640 because it looks like a good spot for a finished panic selloff on a wave 4 down as far as elliot wave analysis goes. Of course some crazy news can change this.

Listens very carefully...
xCal The_Unwind
@The_Unwind, analyst Deus here on trading view was one of the biggest helpers for me. You too.
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