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.