doug456, I was only watching ES and NQ around that time. I didn't see anything unusual... Just normal closing of positions prior to the weekend... ES and NQ sold off last year on Oct 31st about 1545pm est... Intraday candlestick resistance that was established earlier in the trading session between 0949am - 1004am est... Bearish Divergence signals around 1554pm est... About a 4 point decline for the ES and about a 8 point decline for the NQ... no panick selling...no new intraday lows... Just a boring price decline like exiting early from a boring movie. Edited In: Your trying to make this sound like the boring price decline was something unusual or abnormal. It wasn't...there was a deeper stronger price decline earlier in the morning between 1002am - 1031am est... How come your not wondering about that price decline? Maybe because it was obvious...a reaction to the Chicago NAPM key economic report. My point is this...sometimes the market will slowly drop going into the close before a weekend... If the decline is boring enough...I myself will also call it a day and go home early (sort'uv speak). Doug, have a good one and I hope your weekend is going to be as good as mine. NihabaAshi
Most programs kick-in at 10 minutes to the hour so that the program will be finished and there can be an hourly reference "mark". I could make a funny Halloween Joke here about going into the close but I won't . . . Just because the S&P drops a few handles going into the close, rather than the freaking melt-up short covering that we have seen each and every session doesn't mean that "you missed something". More Sellers than Buyers. Period.
Ours is not to question why, ours is just to sell then buy. The sooner you learn there are no myserious secrets, just buying and selling, the better. The fact that it is moving is enough, it doesn't always coincide with news events, more often than not the movement is a result of the normal buying/selling activity of the market participants. And waggie's statement about more sellers than buyers is a common misnomer. There are always the same amount of contracts bought and sold, that is just the way the futures work. The price went down because the sellers were more aggressive in hitting the bids and offering it down, than the buyers in hitting the ask and bidding it up, probably because they were long and wanted to go home flat over the weekend, though that's a guess at best.
Actually ALL price movement is the result of buying and selling activity of the market participants. Except ARCA quotes, obviously. I'm almost at apoint now where I don't even watch CNBC when the news comes out. The news itself doesn't matter anyway.
The ES had intra day resistance and resistance on the daily chart at 1048-1051, it just happened to occur at the close. If you look at the chart today and yesterday it sold off 5 times when it hit that area. There was just not enough momentum at the end of the day to push through, especially because it was a friday and the last day of the month ( traders feel no need to take on extra risk by buying at these levels )
Well yes and no . The reason price moves is a combination of how high or low someone is willing to buy/sell, AND how much liquidity on the other side is available. Think in your mind how you slide each of those variables back and forth and the resulting effects on price., it's a fun excersize . Those two things are the fundamentals of price movement in the market. I would say the misnomer is maybe a half-misnomer if you interpret it literally . Goodluck,
Well, I suppose that happened because supply exceeded demand: You can learn more about that fascinating concept here: http://en.wikipedia.org/wiki/Supply_and_demand