Friday, September 25, 2009

Midday Briefing for September 25th: Downside Break


Note the expanded selling volume (and overall volume) as large traders sold the ES futures as we neared the morning lows. The inability to sustain buying above vwap (and greater volume at bid vs offer) were important downside tells, as were the intermarket themes of strong dollar and weak commodities as the morning wore on. This sets up the earlier morning lows (and high volume regions highlighted by the arrows) as potential resistance for bounces.
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1 comment:

Matt Fahmie said...

If you look at this through a market profile chart, it was clear that value was building lower than yesterday. If you take into account yesterday had initiated range extension and initiated extremes, it only seemed logical(especially after seeing value build the way it did today) to stay short this market. Risk was to the long side and this could have all been conceptualized long in advance of this breakdown.