Day After Day We See Cash Market Selling And Then…

by Chris

Day after day we see cash market selling and then big, huge pops in the futures “”market”” the very minute the cash market closes.

Here’s a couple of charts of the S&P 500 futures on a 5 min scale.

The above was yesterday…and next (below) we see today.

You’d be forgiven for thinking a couple of things:

1) after a big, heavy down day maybe it would be expected or ordinary for the futures to either continue wobbling down, or maybe digest things for a bit before recapturing a big portion of the day’s losses on just a few contracts, or,

2) that such a reliable “trade” as this would have been competed away long ago.

But there it is, day after day, a big pop in the futures right after the close.

I view them as “speed bumps” put there by “”someone”” who has an interest in slowing down this decline.  I can’t think of any economic players that can afford to telegraph their moves and then do them without being taken to the cleaners by the rest of the algo mob.