And An Algo Is What It Appears To Have Been

First take a look at this article from Zero Hedge explaining the compression trade, remember it's intraday.

Now take a look at this article with yesterday's Divergence between E-minis and the risk basket 

Note how it's only the ES in Orange (basically the S&P futures) that rises, while most other risk assets in what's called the risk basket in white, don't follow along. What's happening is the market is being bid up by an algo program, but there's not a broad market move as the risk basket including treasuries, gold, oil, etc are diverging.

Yesterday's divergence shown in the link above resolved with today's downside move. Here's the article showing the resolution and you know what happened in the market.

And today at the end of day, I noted some odd trading patterns. Then I found this posted at ZH.  This should clear that up, the implications you can probably piece together.


I wish I had a Bloomberg Terminal.