
Monday was shaping up as an excellent day for the bulls until an afternoon headline hit from the Financial Times newspaper. Stocks had gapped up sharply at the open and had gone sideways for the better part of a few hours until this headline about Federal Reserve tapering hit the newswires. Immediately all the algorithms began selling which led to selling by humans and a big drop intraday. Some of this was recovered by the end of the session but what was looking like a clear breakout on the daily chart now becomes more muddled. You can see the mid afternoon volatility below around 2 PM, where the S&P 500 lost 8 points within half an hour and eventually fell as far as 13 points down from its 2 PM level. The S&P 500 added 0.76% and NASDAQ 0.83%. There was an interesting housing report today




