S&P 500 trading days: portrait of a farce

This chart captures yesterday’s price moves in the S&P 500 leading up to the Fed minutes at 2pm and thereafter.Note the low volume ramp and the high volume dump swings as algos jump to “trade the news”. No doubt some received advance notice of the Fed release…supposed to be illegal, but leaked advance info to select groups has become quite common. Anyway, advance notice or not, over-valued markets that have low conviction ramps and high conviction selling waves are capital incinerators waiting to happen.

Source: Cory Venable, CMT, Venable Park Investment Counsel Inc.

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