At the close of the regular session yesterday, I tweeted that I thought the market needed a good old wash 'n' rinse. Well, we got one. In the overnight session.
So it feels like we're back to "stabilized" daytime markets and the "real" action taking place in the dark. We've had three gap opens since the low, yet range bound sessions during regular hours.
Sooner or later the market will go where it's gonna go. What difference does it make when it does it? I'm truly starting to wonder whether low volatility is intentionally being sought to choke off speculation and drive small traders out of business. That is why I try to mimic larger players and trade bigger levels.
What could be the motive for driving out small players and dampening speculation? Fewer players equals less liquidity which equals easier manipulation and most importantly -- wider spreads and higher profits for insiders.
People in positions of power and influence abhor competition. They want easy money.
Last night the easy money was made buying the flush below 1287.50. I'm inclined to be a buyer below there in the regular session if price gets there. There is also a spot at 1278.25 that could be tested.
Price has collapsed from 93.75, so we may just get a chance at these lower levels in the light of day.
Just to show how far off I can be, yesterday I was looking for a rising wedge to higher prices, but I bought some short protection using SPXU anyway. I dumped it mid-day when it looked like new lows weren't coming, only to be proven wrong. We went from a rising wedge to a falling wedge from morning to afternoon.
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