"Earlier before the market opened, the NYSE invoked rule 48. That's the difference between the NASDAQ and the NYSE. Supply/Demand and orders set the opening price on the NASDAQ, Specialists set the opening price, sometimes arbitrarily, on the NYSE. Rule 48 says that the specialists DO NOT NEED TO PROVIDE OPENING INDICATIONS and this is one reason many professional traders WILL NOT trade NYSE stocks. Usually, the Specialists will open the market at what they believe will be the market's morning lows, thus we usually see a bounce off the open, that's happening now."
Note the the DIA, IWM, QQQQ, SPY (all NYSE as well, but this is market wide) all opened on their lows with a negative divergence, that's specialists riding the gap up. It's likely when the gap is partially filled they will go short, there has been massive technical damage to the markets this morning. As I've been saying the last few weeks, "use strength to get into the shorts you like or the inverse ETFS".
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