Algos Gone Wild

Things got off to a nice start for bears yesterday…until our old friend the V-shaped recovery showed up.  Even when it looked like it would falter, it just kept melting up.

So, instead of a clean, simple channel to 2875.15, ES has this ridiculous path to follow — all for the sake of delaying the inevitable for a day.As usual, blame the algos.  USDJPY was in on the action, pushing up through its SMA200 every time stocks started to falter.  As we expected, it was a head fake.

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