Another day in the markets that will live in infamy. A large drop by midmorning followed by the usual rise into the close. Gee, maybe it wasn't Trump Tweets after all? https://www.zerohedge.com/markets/reason-behinds-todays-surreal-market-action
The strength of the drop was notable since > ATR, right overnight re common v shape recovery. Main takeaway is it was the biggest fast drop in weeks, and Finally volatility is back. Should be a great week vs chop slow af days recently. Range and volatility is better today at least.
Sounds like the Bloomberg news report was just a catalyst for something already prepared. The fact that it reversed rather quickly and did not really do a major retest is interesting and worth noting. It also sets up a hangman on the daily. A lot of buyer came into rescue the drop. That is a lot of "buy the dip" energy spent. This week should provide more action. Personally did not trade it and never do those types of moves. Prefer to stand aside, but like to inspect the action. Sometimes they are the precursor to black swan type events. Moves like that provide plenty of action and I don't need to capture "the move".
Isn't 8am PST = 11am EST? So at 11am EST drop was already halfway to LOD. Oh yeah why? TD Seq Sell up top :
Not sure I would call this a hammer drop. I was watching both SPY and VIX rising at the same time this morning and ended up selling near the top. My experience thus far is that both of those rising means tectonic plates are building pressure up fast.
no one dropped the hammer. traders lowered ES into the well gently. Then later traders pulled ES out of the well gently.