It's all manipulation but our market is following Fridays lead from US.
The top 5 banks were all down in Fridays session and seeing as XJO is heavily weighted to financials we followed on.
Re gov shutdown
Media usually has public believe that US is on the brink of armageddon in the lead up to potential gov shutdown but if you look at what happened when Trump caused their longest shutdown in history markets actually thought the shutdown was bullish.
On the week leading up to and the day of the shutdown markets got hammered. Then from the second day of shutdown right through to the end markets went up.
Does that mean smart money will want bulls to get overly excited and pile into markets only to dump shares into the abyss?
I have no idea but there's a chance as smart money has a habit of doing the opposite of obvious (for retail).
There's one thing that did happen today in the US which is not bullish and that's student loans just came back on line.
This is a big deal and may weigh heavily on the economy seeing as 5% of all these loans are already in default and financial conditions haven't got any easier, so it's fair to assume this number may blow out big time.
Probably sounds like shouldn't be an issue cause it's just a bunch of young people owing a bit but there's close to $1Trillion that impact 35-60yr olds eg people with heavy financial commitments already that have probably been impacted by inflation etc and don't need more overheads...
That said, considering how US markets have traded I'd say a similar plan to Friday will be an easy one to execute for MMs off the back of the good news of no shutdown.
There's no volume back to 4330 so gap up there to open SPX would be a good target.
Whether buyers think there's still more value above is another matter.
As far as XJO goes are we setting up for a reversal or we forming a bear pennant?
I'll leave that for punters to decided.
One thing I can tell you is we are currently trading almost bang on the monthly VPOC
What's that mean?
It means 7045 is the most loaded price for all of Sept so when she breaks she should break big.
Just beware of any false breaks...
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(20min delay)