Did we see a market capitulation? Massive volumes, with strong reversals - reports of a major hedge fund unwinding equity positions, suggest this could be the case. With this in mind todays Asian session is key (VIEW LINK)
A consequence of the ongoing push to automate markets rather than a capitulation in my opinion. Given that 85%+ of volumes on any given day is pumped through via HFT, it looks exactly like a momentum play, initially to downside and then to the upside. To me that explains the intraday performance of the less-liquid Russell 2000.
Suspect more to come...
true..plus you can throw in the bullish moves in the Dow Transport and Philli Semi conductor index
Nice report Chris. I thought this observation from Shawn Hickman was quite interesting as small caps had been leading the way lower in the US. the Russell 2000 (small cap Index) was up 1.28%, a bullish indicator to me with the index that led the decline is now leading the recovery.