Why did we stop at down 998 Dow pts?

Discussion in 'Trading' started by FCCT, May 11, 2010.

  1. FCCT


    Why did we stop at down 998 Dow pts?

    I have not heard anyone asking this question. Snowball falling should lead to bigger and bigger losses right? Was there anything stopping the market from being down 2000 or 3000 plus points?

    If the futs hit a limit down would that effect regular trading?

    Any thoughts to why we reversed where we did, PPT?
  2. We stopped where we did becuase buyers came in. There was a trading halt waiting at ~1050.
  3. Pekelo


    The TA answer is: We bounced exactly from the lower BB on the weekly chart.
  4. Isn't that where a certain someones Binary options get triggered?

    And his name isn't Warren Beatty.
  5. Mav88


    there are a group of men in a very dark and smokey room who control everything. they didn't want -1000.
  6. 1) Intra-day volatility "records" are made to be broken, i.e. April-2000, September-2001, September & October-2008 and now May-2010! :D
    2) A 2,000 to 3,000 point drop could occur as a result of another "unexpected" event. :(
    3) The reversal could be partially explained by the fact that there would be no resting orders above a market that has had a rapid decline. It can be easy to "bid the market up" in order to inflate the value of what was accumulated on the way down. :eek: :cool:
    4) The PPT seems to respond to declines beyond 500 points that unfold more slowly. :cool:
  7. nxsux


    Actually... the halt on the NYSE would have been about down 2150. Then the exchange would have closed for the day.
  8. Actually, Black Monday in Oct. '87 blows all of those away. True VIX data isn't available from then, but the CBOE reverse engineered it to test the '87 crash.

  9. ramora


    What bank or institution was the first to start buying or was it just a large quantity of resting orders at the bottom that held the decline???? How did the reversal take place and why was it successful when previous attempts to halt the selling did not?

    Thank you,
  10. 1) Yah, what a difference a generation makes. Back then, it was merely a "scare". Today, it would really be the end of the world. :eek: :(
    2) Do they still use 150 to 200 for that VIX peak? :confused:
    #10     May 11, 2010