Stocks managed a smooth transition from fast downward price discovery to a neutral balance.
It started with the formation of a mega balance back on 01/20:
Then Globex volumes and ranges began to settle. Something that likely had to happen, which was my first talking point after mega balance happened.
This week has also seen decent breadth. Even today, which on the NASDAQ is flat since the open, the gap up managed to push several industries, real industries that run on brawn and steel, over +3% on the session:
How perfectly methodical has the 2016 auction been? Perhaps perfect is a stretch, but going into Apple earnings and a high impact FOMC rate decision tomorrow we eased into neutrality.
There are some face rippers out there in the individual stocks also, like SCTY.
They are waiting. I shall do the same.
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Raul, wasn’t that a failed auction around 1:30pm?
on what time-frame? local day-trade time frame I see one but the higher, position and swing timeframes I do not. NASDAQ right?
yes, day trade time frame on the NASDAQs. Just stood out to me as odd. Do those kind of intraday moves ever translate to swing timeframes?
Sometimes it does affect the position (2-10 day) time frame. Other times it gets negated rather quickly. You want to see a fast move away from it, and soon, on the higher time frame if it is significant. Otherwise we could just be in balance and ready to churn back up through the FA.