The trouble with low-volume meltups driven entirely by algos is that they lack a strong foundation. So, troubling economic, political or military news often unwind them — after hours, of course. Such was the case with yesterday’s melt-up.
There’s no shortage of bad news this morning: a new UK election, horrid factory output, oil’s production cut in danger, disappointing housing starts…oh, and the backdrop of potential thermonuclear war.
USDJPY dutifully ramped back above the SMA200. And, WTI studiously avoided completing a bearish H&S Pattern. VIX, of course, shed over 8% intraday — just because. It was enough to run some stops and put bears on edge. But, it wasn’t enough to break the negative trend that’s pervaded since the 2400 top.
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