It is so stupid that some big boys with decent bots will short for an easy profit, maybe just for the fun of it.
This "market" is getting really stupid.
There is rate hike in June, Brexit, and rate hike talk again in July.
No more rally.
Then there is QE in September, and before the general election there will the talk about new QE and negative interest rate, the last ditch effort to juice up the market to get H elected.
down even if it is good.
Algos are looking for reason to sell.
The slow moving algos has an upward bias, but daily algos has a pump and dump pattern.
The trading will most likely be suspended due to "technical reason" in the coming days, if not today.
This kind of huge +3 std wild swings in a few days are typical for imminent problem. Big problem coming.
This is a typical dead cat rebound.
The theme for the rest of the day and into next week will be "sell first, ask question later".
double top. The stupid algorithm will pick up this "signal" for sure and sell again.
This is not even algorithm trading. It is lazy trading, probably done with a bunch of open source buggy program.
The trading range for the next four days will be 195-205, depending on which rumor is coming out at any given moment. Most likely there will be another dead cat rebound tomorrow due the three stooges meeting tomorrow.
A small rebound at 195, maybe trying to re-test 200, based on some "rumors". Then another round of sell-off coming.
There is probably no recession this year, so the real crash has to come later, but I might be wrong.
It is not just weird, it is predictably weird, and bots are gaming it. That makes it 10 times more dangerous.
The selling will be spectacular because of the correlation with bond market.
This year would otherwise be a flat or mildly down year. However, the Fed has successfully laid the ground for another pump and dump crash.