Wednesday, October 24, 2007

Chart of the Day: Dramatic Nasdaq Reversal


Q's gap down, but attempt to rally. Failure ensues after the negative housing report. After some consolidation, selling continues with force and speed. Legitimate or manipulation?

Selling accelerates DRAMATICALLY (see the large green bars)...the moves came so fast it makes me wonder what was going on.

Trading was very choppy (untradeable in my case) most of the afternoon until the low was retested around 2pm. After that is was a crescendo of buying in several 1-minute bars (very suspicious to me). I had a sneaky suspicion that the retest would fail, but I didn't expect the reversal to happen so fast and furiously.

The reversal pretty much continued straight into the close (with one small bump).

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