Tomorrow the algos will do everything possible to protect first half gains, whether that means buying or selling remains to be seen...
In a nutshell, the S&P decisively broke the election uptrend and tested down to the 50 day before sponsoring a major rally back to the prior support line from June 1:
The major damage was in the Nasdaq, growth, Tech, Biotech and "low volatility" yield stocks - aka. the recession 'barbell' trade aka. the dumbbell trade...
The Nasdaq (100) mega cap growth index is decisively through its 50 day:
We've seen this movie before:
Wall Street's latest big tech IPO, Blue Apron, was a massive dud, requiring the underwriters to defend the stock late in the day, priced at $10, closed at $10. This IPO had originally been priced at $15-$17, but just yesterday slashed the price to $10:
Meaning that the IPO window is now closed...
Consumer staples
Oil's short-covering rally ended today.
USO ETF
The dollar got shellacked, as global gamblers no longer believe Fed bullshit...
Banks/financials gapped up on the Fed's "capital return plan approval", but then gave most of it back
Because we all know how bullish this is...
All of which means that the market has no leadership, so selling volatility insurance in a house fire, may be a bad idea, just yet...
