Hi All! I am pretty much convinced that the move on June 27 during midday was generated artifically (when ES moved from up 980 to 988). Volume was extremely light during these midday doldrums and I think one of the PPT members or someone else who this is useful for took this chance. Without this move, we probably would have closed somewhere around 960. If I assume this correctly, it could be that the PPT might expect a larger correction they are trying to hold against to dampen it a bit. Someone else sharing these thoughts ??
Amateurs took the open. Professionals took the close. Take a look at the most current COT report. Commercials just went short big time. All the small specs probably pushed it up on the light volume and the heavy hitters took it home. In other words, bull trap. A move can be made by lack of sellers just as much as by motivated buyers. Anyways, 8 points is not particularly a large move given the ATR of 15 points.
I consider an "artificial move" for these 3 reasons mainly: - if you look at the tick chart, it is like a straight line upward. no retracements, just a single line. - major indicators pointed bearish in front of this. there was no "reason" visible for what happened. - 8 pts move vs. maybe 30k or 50k ES traded. don't beat me for the number, but I haven't seen such a thing often. It looked like outside RTH.
Artificial move? Huh? Price sold slightly to daily support, rose right up to daily overhead resistance, and then sold off big time. These 8 to 10 point moves are common place every single day.
Furthermore, there are no "artificial moves." Price always changes directions FOR A REASON. There is ALWAYS support or resistance, ALWAYS.