Sure did, but what's first, the egg or the chicken? Did the Fed react to commercial paper market and interbank lending dislocations or did they react to the SP500 being down 10% from it's intraday high and being flat YTD?
<i>"Did the Fed react to commercial paper market and interbank lending dislocations or did they react to the SP500 being down 10% from it's intraday high and being flat YTD?"</i> The worst of that news was released prior to Friday's option expiry session, a day widely known for high volume, position squaring and lots of rollovers into back-month positions. Blow that one out of the water, go into the weekend with media pumping their usual drivel and let Joe Bluecollar talk to his buddies about how the market rallied strong after being saved by the Fed. Or maybe the Fed simply didn't realize it was an option-expiry Friday?
Dow up 106 points with 65 minutes left of trading If the markets are weak today I would like to see how much the dow rises when it is is actually 'strong'.
From my vantage point, just about every ta practitioner and his/her brother has been watching that descending channel on s&p500, and expecting it to bounce back down. Which, implies to me that a ton of shorts just hopped on at the diagonal resistance line. Upshot is that the line was breached -- period. Meaning the watchers (with the real xray goggles) are quietly embarking on a fade the shorts spree. Keep in mind there is no panic to sell until the next major bomb shell gets uncovered. When others see low volume days like today, I envision the watchers trolling the waters, sipping on java (plumes of smoke dancing in the cold air), with their fancy fishing poles, nets, and transistorized fish-finders, looking to fade the biggest school of fish they can find (while simultaneously avoiding said white whales, killer whales, and/or large predatory blood sniffing sharks). One entities descending channel is another's breakout flag pattern.
"If the markets are weak today I would like to see how much the dow rises when it is is actually 'strong' " laughable, eh.
<i>""If the markets are weak today I would like to see how much the dow rises when it is is actually 'strong' "</i> The Dow is a token index inside the S&P 500. Same with NDX... which makes S&P 500 "the market" all encompassing. Up nicely today, an August Friday. What's the current run-rate volume? 850k ES contracts traded into the 18pt session range? They came down every day for weeks on 3mil and 4mil ES contracts puked out. Ya can't eat like a hummingbird on the way up, dump like a blue whale on the way down and expect to pass any physical exam.
The mere fact that this thread exists explains the action late today. Too many bears in the den today.
Maybe over 300 like it has been doing on big down days? But that would require some volume and real conviction...