Responsive Sellers Beatdown

Our bias was correct buyers would take it higher.  And our suspicions about the quality of yesterday's auction were also correct.

We did previously mention the all-mighty-cosmic-powers of the gap?  Right?

Geez!

Today was nothing short of a subsequent beat down, taking out and shooting all of yesterday's long inventory -- and then some.  

The downwards action was tricky early going.  Frankly, I saw little signs of a vicious trend move lower unfolding.  IB balance volume was lower than yesterday's, a multi-month low in fact. (We note this on the slides)  Only a viciously trending TLT had me wary.

The collapse broke a few patterns that have been tried and true as responsive buying was nowhere to be found.

So, it's very clear now that the market has indeed changed as 3 of the last 4 sessions have opened higher and sold off. It sure feels "different" this time, like longer time frame sellers are at work.

This market has a lot of support zones close at hand.  Tomorrow is high odds for balance after today's trend day.

A lot of inventory is very short now, but if they want to take it down more fine.

They could print many more days like this in a row.  And a buyer responsive bid would not surprise at all either.