The path of the Nasdaq this week has the look of a master at work. I think back to trading legends and how they make the bulk of their money at inflection points. Someone deep pocketed is making an earnest attempt to influence the market.
The month started with a strong Moday—something to corral the bulls and generate a sense of complacency. Then Tuesday they had to wake to a gap down then a knife lower kind of morning, then the seller backed off, created space.
Wednesday same thing, gap down then knife lower only to again back off, create space. Then today we gap up, push higher, pull back a touch, 1-tick the daily high then WHAM—a motivated move across the entire range puts us neutral. Price pulls back to the opening print then a smooth completion wave. Now we are in a corrective holding pattern waiting to see who blinks.
The net effect is little-to-no-change, but the coordinated, methodical efforts suggest a higher time frame at work here. There were also some concentrated strikes on the Nasdaq 100, where nearly 80% of the stocks confined within it down ticked simultaneously. This force or influence has algorithmic resources.
Watch how we trade in relation to the daily MID 4448.75 for an idea about who ultimately holds control on the session.
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