why did market tank into close?

Discussion in 'Index Futures' started by BlackBison, May 14, 2008.

  1. hi guys i shorted the rally today at 1415 and came back sold at close 1409. i was away tho until close, what moved market lower? technical move or any announcements?

    id like to know since i am swing trading short since last week at 1423, id rather it was technical

    thanks in advance
  2. CONR


    Just profit taking. Did you see the vix? It got down to 16.19.
  3. ok thnx, thats what i thought just making sure
  4. Look at $VIX it almost hit -3 standard deviations today on a daily chart. This market is severely overbought. Secondly, NQ and ER2 (russell 2000 mini futures) were breaking out while ES and YM weren't. Huge divergence. Lastly Financials haven't recovered from the sell off last week, the market can't go higher without financials (XLF).

    A little tech analysis: on a 60 min chart, ES showing a triple top at the 1420 level.
  5. jessop


    Definitely technical on my charts - 1420 R level.....matched with a similarly strong R level on NQ.
  6. Profit taking??? Yuo must watch a lot of CNBC or Nightly Business Report.
  7. Absolutely, positively do not fool yourself. It isn't technical at all, it's fundamental. I.E. the smart money selling while they can. This market is as fragile as you can get and with earnings season almost over, nothing can prop it up any longer.

    Only 1/3 of the credit crunch has been written down. I knew AIG was going to get it. Fifth/Third, JP and others are still hiding huge losses on the books, they're next. Market can't float on MSFT/YAHOO deal alone.

    If you think this bear rally was for good, think again. I'd get short and very soon if I was you. ES:)
  8. CONR


    As I sell into your one lot buy at the top, your probably thumbing through BMW's latest model brochure.
  9. I doubt if yuo even trade, but that just makes yuor like most on ET.

    All the markets needs to drop is a lack of buying.
    Think about it: Suppose yuo sold coats, and no one was buying, or if they were, it wasn't much. What would yuo do? Yuo'd lower the price or have a sale until yuo moved yuor merchadise. The market is no different.

    If yuo're selling in order to engage in "profit taking" this would be reflected in the volume as somebody would have to be buying from yuo. Yesterday's volume was down from the last few days, with price closing on the lows. This is simply a lack of buying interest, not "profit taking."