Well if the POMO money went anywhere, it went to the NASDAQ today. Earlier I posted an Ascending Wedge (bearish) whichI said had seen the first of several headfakes based on the computer black box pattern recognition-a prime example of technical analysis being used against you.
Here's the 5 min chart of the Q's-the 1 min chart is inline with price.
So we've seen some distribution into the last headfake back up north of the wedge (something technical analysts have been brainwashed by thousands of books to believe "this is not suppose to happen" which in turn usually causes them to declare it a failed pattern and they take the long side of the trade, only to see another reversal down. Keep in mind with a market that is hobbled with low volume, all this HFT/Black box activity not only increases orders that they take the other side of (the correct side), but they also receive volume rebates as well-they can't lose. However, at least we know that the run up is not being bought, but rather sold by smart money/HFT/Black box traders.
The DIA is in line with price with a slight leaning toward a leading negative divergence on the 1 minute and the SPY is basically showing no signals to speak of as of yet. Like I said, the action has been centered on the NASDAQ 100.
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