Poker, how in the world do you see things as down? We are clearly in a long term uptrend and clearly in a short term uptrend. As the charts show, yesterday reversed the gap and today reversed yesterday. Both on pretty good volume (above average for both days)
Without taking anything else into account, and just only looking at the candles, we are still marching forward along that uptrend line. Yesterday showed signs of a possible breakdown of that uptrend line. After all, you had high volume and a close near the low. Granted. But it was still in an uptrend. Absolutely no reason to consider anything other than staying long until you saw a confirming break, which never happened.
But if you do in fact look at what happened yesterday, as I've been saying here time and again, there were 'reasons' behind that move. This is where NM on CS is correct in pointing out the games that are played in the market by market makers and large trading firms at the end of the month. These things happen not just at the end of quarters, they happen at the end of months also (usually to much smaller degree though).
GOOG popping off was just a gift on the perfect day (end of month) to allow market makers to capture stop losses. That's what added to the volume spike. But there's more to it --- ah! Yesterday might well have been an accumulation day as GOOG's news gave an excuse to pull bids and slam offers and then use the stops to cover short term shorts and then add to the volume by turning around and positioning for the 1st of one of the strongest months of the year - TODAY.
On a very short term basis, games like this happen all the time and that's why you saw the end of day on Monday sell off. I kinda saw this happening and that's why I posted the probability of that happening yesterday on Monday night.
But folks, THAT'S WHY I HAVE BEEN SAYING TO BUY THE JUNES!
AI
