IMO today was normal stock market fear and greed. Friday at the market close I heard the comments by that one trader mentioning the biggest headline in the news all week being HFT, I am not so sure of his reasoning that the biggest headline impacting the market.
I dont see how anything to do with our govt going after HFT could impact the market direction.
Perhaps you are referring to the illusion these computer programs provide with imaginary depth to the market that evaporates when there is a downdraft?? But this was not a flash crash, so therefor I don't see how HFT could cause the Nazdaq to sink.
The Nazdaq has been selling off for the past month.
Large institutional moved their money into bonds at the starting bell, even if the five main HFT firms all decided to put their money into bonds I don't think they could move the bond market like that. Also, making directional bets such as putting their money into bond market is anathema to the whole business model of HFT.
The 10 yr treasury has been range bound for quite awhile, this week when it couldnt get through 2.8% Mr. market simply decided to take its money out of stocks and put it into bonds.