Revisiting Friday's Action

Remember this post on Friday when all of the sudden 3C had a lot of clarity, breadth fell off a cliff and the move in 3C and market breadth was described as,

"The 5 min is what gives me a little more confidence in my opinion.

Because breadth deteriorated so badly during the divergence, but price didn't move down much, however, distribution on the 1/5 min charts did, it's my opinion that today was used for short selling into some strength. Earnings I think have disappointed beyond expectations and we haven't even gotten into the heart of companies that face margin squeezes like manufacturers, retailers, etc.

While we're just negative up until the 5 min chart, the breadth charts deteriorating and how rapidly they did so, suggests to me that there was a target zone that the market needed to be lifted to, that's where they wanted to put on shorts and the deterioration in breadth would suggest that they did so pretty quickly."

Well it turns out there was a reason for that; the White House knew about the S&P downgrade Friday which means all of Wall Street knew moments later or before.

Here's the complete story