$8 Billion E-Mini Dump Sends S&P Below 200DMA, Dow Tumbles 500

Well that re-escalated quickly.

Moments ago, a 65,000 sell order in the E-Mini, equivalent to a notional of roughly $8 billion, sent the S&P 500 tumbling, and breached the 200-day moving average...

... and sent the Dow Jones plunging by over 500 points.

As a result, all major US equity indices are now negative for the year...

All the FANG stocks are now lower since the start of March and Tesla is collapsing...

...

... as the USDJPY snapped lower...

Sending the 10Y yield to session lows.

Comments

Sir Edge jmack Mon, 04/02/2018 - 12:53 Permalink

 

The 'Dump' Was to Break the SPY low of 257.83 that was made 10 days ago on 3/23/2018...

The Big Players needed to get the panic stops to go off under that daily pivot point (257.83) and boom the selling accelerated once below that value... down to 256.32 SPY as of 12:12 pm EST...

The Weekly, Daily, 60min and 10min trends were down into that low... and are still down... with the 10 min now turning sideways...

now we have a pause... 12:53pm EST...

In reply to by jmack

lookslikecraptome NugginFuts Mon, 04/02/2018 - 14:25 Permalink

This should be a lesson to the coineratti. All markets are able to be manipulated. Boom. One huge order and there it goes. 

PSST!!!!  This is y observing the order book is far more important that technical analysis. TA cannot tell u when this is gonna happen. One dude steps up and hammers it in either direction. Stochastics, MACD, and moving averages etc pick it up after the fact. At least if u see that huge order you can adjust your position or get flat if u pay a whole lot of attention to the dom or the book. 

And there is a lot less wash trading or spoofing going on in these indexes than in btcoin markets. If this person showed up with that huge order and then removed it in 20 seconds, some regulator will go after them or him. In btc you see 100 coins 1 tick away from the bid or ask and they are removed in 30 seconds or a minute ALL THE TIME. Retail goes with the 100 coins, then they get hammered in two minutes or less in the opposite direction. 

Was not in the e mini today when this happened. But the order book/dom is very helpful. Can save u a bunch or get u on the right side. 

In reply to by NugginFuts

lookslikecraptome asteroids Mon, 04/02/2018 - 14:56 Permalink

I do not think they dumped 8 billion. They wanted to move the markets down. That simple. You see it all the time. Open an 8 billion short position and u r gonna move the market down. Honestly I think those people are cool.  You just have to float in their slip stream.  Was not there today for this one. When the elephants stampede downhill run after them. do not run uphill. NOT advice, every one knows this. 

In reply to by asteroids

holgerdanske Belrev Mon, 04/02/2018 - 12:21 Permalink

I for one, did not expect it. But I think the extraordinary amounts of printed money and the smoke and mirrors of the FED and the plunge protectors, managed to hold the plate on the stick and turning for a extraordinary while.

However, I have never had any doubt as to how this will end.

Badly.

My money is in gold coins, land, housing and collectables. If the worst comes to the worst, I can grow my own food, actually do that already, so bring it on.

In reply to by Belrev

Occams_Razor_Trader Belrev Mon, 04/02/2018 - 17:18 Permalink

65,000 contracts??

@11:35 the 5 minute volume was 71,000 contracts, which correlated to a down spike~ 13 points.

The average 5 minute volume before then was ~ 18,000 contracts.

If it was sent as one order- the volume should have been around 85k.

It wasn't me I would have had a margin warning!

In reply to by Belrev