The S&P And The Art Of The Deal

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When you have 530,000 ES contracts traded on Globex and the markets are down hard, it means one thing: everyone sold, and most of the selling was done at low prices. Then, the headline news algos did the heavy lifting. These algos feed off extreme overbought and oversold conditions and they took the ball and ran with it. They care about the nearby buy and sell stops and after a small rally after the open, the NQ started getting hit and the ES sold off down to a new low of 5950.25, just above the Globex low of 5935.50. Shortly after, several key headlines hit:

MEXICAN PRESIDENT SHEINBAUM SAYS HAD A GOOD CONVERSATION WITH TRUMP

MEXICAN PRESIDENT SHEINBAUM SAYS MEXICO WILL DEPLOY 10,000 NATIONAL GUARD IMMEDIATELY TO BORDER TO AVOID TRAFFICKING OF DRUGS TO U.S.

MEXICO'S SHEINBAUM SAYS TARIFFS DELAYED FOR A MONTH

I hate to say it, but this is how this game is played, too long, too short. After several pullbacks and pops, the ES continued trading higher and then dropped down to the 6048 level just before the MIM showed $2.7 billion to sell and then rallied up to a new high of 6069.00.

Meanwhile, Trump agreed to delay the tariffs he had placed on Canada and announced upcoming discussions with both leaders and China is also preparing to talk with Trump.

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