Submitted by Mark Hanna
Courtesy of MarketMontage. View original post here.
Other than 1 session last week, this has been a very methodical melt down. There is no panic in the tape, and at each (very obvious) support level the buyers step in to attempt to rally the market. Perhaps we are all jaded by the action of 2008/2009 (or for some of us 2000-2002) but this sort of 1%ish drop intraday is not much to shake a stick act. Today the S&P went to an obvious support level of 1340 and then right below so the algos could trigger stops in the 1-3 point range below, and then right back up to it. This also parallels the key 2900 level on the NASDAQ. But the tape is very methodical, and there is not much emotion to it despite the not quite constant selling.
Tech is outperforming a bit today as the ‘social media’ stocks are catching a bid ahead of the IPO of the decade coming this Friday.
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