By Gareth Soloway on August 6th, 2010 12:01pm Eastern Time
The markets gapped lower initially after the Non Farm Payrolls Report showed a higher loss of jobs that expected. After the gap down, the markets surged back toward the unchanged level with the SPDR S&P 500 ETF (NYSE:SPY) hitting a high of $112.57. This was just $0.28 shy of the gap fill. The markets then dumped, the market collapsing after volume dried up and it appears one institutional seller came out and unloaded a large block. Because of the light volume, that block sell crushed the markets and all of a sudden the sellers came back with a surge. The markets dropped quickly to the $110.92 level on the SPY. Note the chart below which signaled a buy at that level. Since then, volume has dried up again and the markets have bounced higher, though still down on the day.
Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.com
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