Russell 2000 Breaks Below Key Technical Level

Tyler Durden's picture


For the first time since Novemeber 2012 (when QE4EVA was kicked off in style), the Russell 2000 - that long-heralded indication that everything is great in the US economy and the indicator that stocks are great at discounting the future that is undoubtedly rosy - has broken back below its 200-day moving-average. In the meantime, an oddly dominant algorithm is swamping options markets with millions of fake orders..."rigged?"



Of course this is a crucial level so this from Nanex raise our eybrows...

What's better than leaving an audit trail of actual manipulative buys (or VIX sells) than swamping the market with million of fake orders in order to confuse and placate any actual real sell orders?

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Tue, 04/15/2014 - 11:33 | 4661191 Cattender
Cattender's picture

but.. but..Escape Velocity and stuff...

Tue, 04/15/2014 - 11:36 | 4661215 Vampyroteuthis ...
Vampyroteuthis infernalis's picture

Bring it bitchez!!

Tue, 04/15/2014 - 11:37 | 4661220 clones2
clones2's picture

Looks like it is getting support and bouncing off the 200DMA - back up the truck!!!

Tue, 04/15/2014 - 11:44 | 4661282 Oh regional Indian
Oh regional Indian's picture

This is all bow string tightening for what is upcoming.

This is not the time to pull the trigger. For a mind-expanding look at what is happening, when you have 15 minutes, check this out...a friend's blog...


Tue, 04/15/2014 - 12:48 | 4661640 TruthInSunshine
TruthInSunshine's picture

"Alert Out of control #HFT algo blasting millions and millions of fake orders in options. May be a record setter
— Eric Scott Hunsader (@nanexllc) April 15, 2014"

Has anyone seen John Connor?


Tue, 04/15/2014 - 11:42 | 4661267 Stoploss
Stoploss's picture

Kevin you fucking retard, it's not 3:30 yet!!!!!!!!!!!!!!!!!!!

Tue, 04/15/2014 - 12:32 | 4661552 DeadFred
DeadFred's picture

Kevin knows the flash crash starts when the Russell drops below 1070

Tue, 04/15/2014 - 11:47 | 4661289 hobopants
hobopants's picture

HFT False flag?

Tue, 04/15/2014 - 11:49 | 4661321 Oh regional Indian
Oh regional Indian's picture

HFT gang saying: See what happens if you trouble us? 

Digital Thuggery Criminal Corp.!


Tue, 04/15/2014 - 11:49 | 4661308 SunRise
SunRise's picture

Escape velocity achieved? Yes!  Direction? Auh-Oh!

Tue, 04/15/2014 - 11:35 | 4661210 john39
john39's picture

janet- 'we are going to need a bigger printer'

Tue, 04/15/2014 - 11:42 | 4661270 101 years and c...
101 years and counting's picture

like the BDI, the R2K only matters when its rising.  when the almighty dow 30 tank (pun intended), then we have issues.  thats when the big guns come out.  ie, more printing or else the world will end.

Tue, 04/15/2014 - 11:38 | 4661223 Winston Churchill
Winston Churchill's picture

Green sharts.

Tue, 04/15/2014 - 11:46 | 4661290 Bananamerican
Bananamerican's picture

That one's so old, Churchill.... :0/

Tue, 04/15/2014 - 11:38 | 4661228 Dr. Engali
Dr. Engali's picture

If only we had some sort of distraction to blame all of the market woes on......

Tue, 04/15/2014 - 11:40 | 4661247 Winston Churchill
Winston Churchill's picture

Guess the megatonnage of the pretty flashes ?

Tue, 04/15/2014 - 11:46 | 4661292 maskone909
maskone909's picture

cue rapid developments of russia blame for taking down flight 370


Tue, 04/15/2014 - 11:39 | 4661234 what's that smell
what's that smell's picture

i hereby declare taper kaput.


Tue, 04/15/2014 - 11:39 | 4661243 max2205
max2205's picture

I just put in a fake order at Hardees

Tue, 04/15/2014 - 11:40 | 4661246 AdvancingTime
AdvancingTime's picture

Over the years we have witnessed the type of market reversal the big banks supported by the Fed can generate with a concerted effort to buy S&P 500 index futures at crucial support points late in the day. This has proved more than enough to turn the markets from red to green in the blink of an eye.

The manipulation in this market is a reason for caution!  If it looks like a Ponzi scheme, sounds like a Ponzi scheme, and feels like a Ponzi scheme, then it is probably a Ponzi scheme, but that does not guarantee that it is over. More about this subject in the article below.

Tue, 04/15/2014 - 11:41 | 4661254 Invinciblehandaxe
Invinciblehandaxe's picture

so many guns in the fasist states of america yet not a single congress man shot death like a pig

nations of fukcing losers and i cant wait when the time comes and you fat fuckers feel hows it

is like when the boms start dropping on your fucking empty heads

biggest irony - its gonna be UFSA made bombs


Tue, 04/15/2014 - 11:41 | 4661258 Ralph Spoilsport
Ralph Spoilsport's picture

Go away troll.

Tue, 04/15/2014 - 11:49 | 4661309 maskone909
maskone909's picture

actually it will be DHS hollow points....  but close enuff

Tue, 04/15/2014 - 11:42 | 4661261 TaperProof
TaperProof's picture

From someone who runs a managed services data center and has his entire professional life... the trading systems/markets on wall street should never be this fucked up or allow this type of flooding/rogue algos.  There are relatively easy ways to detect/limit these types of things with proper code.    ...but if things werent fucked up and always breaking or being rigged it wouldnt be wall street any more.

Tue, 04/15/2014 - 11:45 | 4661287 LawsofPhysics
LawsofPhysics's picture

"Markets", what fucking "markets".


A market implies a mechanism for true price discovery, please we haven't had that for a long long time.

Tue, 04/15/2014 - 11:48 | 4661299 TaperProof
TaperProof's picture

If you live in reality and not the matrix then what you say is true.

Tue, 04/15/2014 - 11:50 | 4661319 Quinvarius
Quinvarius's picture

I am pretty sure people are paying extra to be able to do this.

Tue, 04/15/2014 - 11:43 | 4661277 LawsofPhysics
LawsofPhysics's picture

Shocked, just shocked I tell you.

Where can I buy good solid company with a p/e ratio close to 2?

(certainly not any U.S. companies anyway).


Printing money and handing it out to your friends is no basis for a sound monetary (or political) system.

Tue, 04/15/2014 - 11:50 | 4661329 SheepDog-One
SheepDog-One's picture

Yay for the fun-derp-mentals!

Tue, 04/15/2014 - 12:46 | 4661619 No Quarter
No Quarter's picture

 "Where can I buy good solid company with a p/e ratio close to 2?"


You cant- you have to build it yourself ;)

Tue, 04/15/2014 - 11:46 | 4661294 Al Huxley
Al Huxley's picture

Can't the FED do something about this?  Maybe sell some gold to increase confidence in the system?

Tue, 04/15/2014 - 11:49 | 4661311 SheepDog-One
SheepDog-One's picture

Seriously ZH, you should start the inverse articles, like when they pump indexes way up just put out an articles saying indexes are plunging, and vice versa. It would be fun! Much hilarity from other media would ensue.

Tue, 04/15/2014 - 11:49 | 4661312 NOTaREALmerican
NOTaREALmerican's picture

Are we there yet?

Tue, 04/15/2014 - 11:49 | 4661317 Yen Cross
Yen Cross's picture

   The 10 year is edging ever moar closely to that 2.60% level.

  U.S. 10-Year    [2.612]    2.639    2.663    2.610    [-0.027    -1.02%]    15:48:22

Tue, 04/15/2014 - 11:50 | 4661326 max2205
max2205's picture

Millions in fake orders....wake me up when its billions of fake orders

Tue, 04/15/2014 - 12:04 | 4661399 Ness.
Ness.'s picture

I just got this in my inbox.  I'm guessing I'll be seeing more and more of these inthe future.


Temporary Short Selling Restriction on Banca MPS SPA

Dear Client,

Please be informed that CONSOB, the Italian regulator, has decreed a temporary short selling restriction on shares of Banca MPS SPA (ISIN code: IT0001334587). The decree has been adopted by the AFM.

The duration of the restriction is from today until close of business tomorrow.


Tue, 04/15/2014 - 12:04 | 4661402 Downtoolong
Downtoolong's picture

No one wants to risk getting run over by sellers tomorrow, who don’t want to risk getting run over by sellers on Thursday, who don’t want to risk getting run over by sellers on Friday, who don’t want to hold stocks over the weekend, which is everybody.  

Tue, 04/15/2014 - 12:16 | 4661415 HardlyZero
HardlyZero's picture

Down Tuesday ?   Tectonic shift.   Feel the Earth Move...   Feel the rumble!

Tue, 04/15/2014 - 12:17 | 4661480 whidbey-2
whidbey-2's picture

And nothing is wrong with doing a few sell orders?  What do you think its all about?  Selling and buying.  Take a break and sing a little while your head clears.

Tue, 04/15/2014 - 14:33 | 4662122 Pareto
Pareto's picture

so.  the last time the russel broke the 200 day it was a buy........

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