By Hedge Ly
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| 15 min NDX. same lines just extended as time progresses |
The SPs opened with initial buying up to 1280 buy stops in continuation of the melt up from 1266's pre market..1280 was the last print before the precipitous and accelerating sell off began.
What makes todays price action different from the last 8 sessions was the act of traders selling the news of Senate approval. The anticipation of the vote and the culmination both sold.. Explosions of volume happened today as the index's tested support points, the largest volume spike occurred as the S&Ps traded through 1250 nearly 100,000 minis exchanged hands in the last two minutes of cash session. Most of those traded on the bids as sell tickets slammed the Armageddon buy stops placed by traders under 1253 who either forgot to move their stops or cancel them.
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| 5 min ES_F |
Upside levels of note:
1250
1253
and 1260
If the futures stay this low into the AM we are sure to see some interesting trading up into cash open,... watch what crude does, the past few session the ramp in crude preceded equity ramping and as oil fell off highs so did the index's... As GS chart used to be the market soothsayer, it looks like Crude might have taken its spot.
Trade what you see and not what you think, a lot of traders were messaging me this morning asking if they should sell put spreads on the SPX and on momentum stocks. My answer was heck no, you need to be in defensive mode here waiting for the market to push into some new territory via price discovery, if we can get new lows below 1241 in the S&Ps we could be in for a quick ride to the 50 day.
BABE of the night below the fold:
