The US equity markets stumbled out of the gate as the S&P 500 slipped back down to test its 200-day moving average. Then as volume dried up, the inevitable occurred - an algo-driven vertical melt-up pushing stocks back to unchanged... Crucially, undelying this 'panic-buying' is only 35% of stocks are advancing!!
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Who could have seen that coming? Well, anyone who remembered at the open that the only right move - allowing HFTs to levitate stocks - is not to trade.
as a reminder, zero volume levitation algos can't levitate stocks until volume returns to zero
— zerohedge (@zerohedge) August 17, 2015 [5]
And then the green light:
Volume declining.
— zerohedge (@zerohedge) August 17, 2015 [6]
Even if credit ain't buying it (or rather, no central banks are buying junk bonds here).
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