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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Cattender's picture

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

clones2's picture

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

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...


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?


Stoploss's picture

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

DeadFred's picture

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

Oh regional Indian's picture

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

Digital Thuggery Criminal Corp.!


SunRise's picture

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

john39's picture

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

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.

Bananamerican's picture

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

Dr. Engali's picture

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

Winston Churchill's picture

Guess the megatonnage of the pretty flashes ?

maskone909's picture

cue rapid developments of russia blame for taking down flight 370


what's that smell's picture

i hereby declare taper kaput.


max2205's picture

I just put in a fake order at Hardees

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.

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


maskone909's picture

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

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.

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.

TaperProof's picture

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

Quinvarius's picture

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

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.

SheepDog-One's picture

Yay for the fun-derp-mentals!

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 ;)

Al Huxley's picture

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

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.

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

max2205's picture

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

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.


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.  

HardlyZero's picture

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

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.

Pareto's picture

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