Sentiment & positioning got too bearish. There was already a good deal of hawkish repricing in the last few weeks, so the report turned into a "sell the news" (or buy the news in this case) event. Remember that stock indices are always building up buying pressure under the hood. You need new, fresh catalysts to keep hammering stocks lower, otherwise they'll automatically drift higher - especially if we're below ATHs or after moving sideways for several months.
Impulse move up in a very bearish environment. Personally I think it will tank coming into Monday's open.
It’s really very simple: everything you’ve ever been taught about economics is a lie. The whole damn US economy is too big to fail. If anything goes wrong they’ll play with interest rates and hand out money until everyone is happy. Sunshine, lollipops, and rainbows!
News and whatever doesn’t really matter. Market does whatever it does. For day traders we just need to follow the market and ignore everything else. I am still fighting to do this consistently. Too often my judgment on the market leads me astray.
Personally, I liked today's action. It started out as if the daily chart was going to be a blood red waterfall, but then a flip and a big reversal. Well Played, Market Makers! Next week is going to be PPI and CPI reports and the news outlets are going to concoct whatever explanation for whatever happens, but I am looking more forward to Friday the 13th and October 19th to see what they have in store.
I think this has nothing to do with the economy. Methinks the Russians will pull out of Ukraine and end the war soon, which is I guess good for the world economy.
Every time a day happens like today all kinds of explanations are put forward. There is a topic with the title (I think?) "Why is the obvious not so obvious". That was today. When everyone and their uncle was short near the open, figuratively, who is left to sell?
eMini - once it broke SOC (Red), prior Settlement (Magenta) and consolidation range that followed it was "Katy bar the door": Oh and Tick and Cumulative Tick on the bottom confirming:-