New Highs and a Rinse Lower

Back on the 13th and the 18th we noted that as auctions age, the more we need to look out for afternoon inventory re-balances.

13th - The market is very extended, due for more consolidation, or maybe even a pullback of some sorts. With this auction really aging now, we will be on the lookout for intra-day afternoon failures.  It feels like that there should be more than a few weak hands longs in this market. 

18th - Death-grind action is here.  Once the ranges get to be under 10 points like today, the auction is clearly getting a bit tired.  Not that it will go down in a fireball, but inventory rinses lower become higher odds to watch out for.

We were a bit early, but not that early.  Sessions on the 24th, 25th and 26th all featured up moves that failed lower.

And today's session utterly tanked just after (you guessed it) 11:00.