It doesn’t get much more textbook than this

You don’t have to believe in charts. The algos do all the believing for you. The popular trading meme coming into this week was that the declining 50-day moving average would serve as the next major resistance point for stocks to have contend with if they were going to continue the dead-cat bounce.

It doesn’t get much more textbook than this – when the SPY failed at the 50-day, the sellers took over. And by sellers, I don’t mean your dentist, Larry. I mean the various trend-following programs that now decide the short-term directional moves of the asset class.

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You don’t have to like that this is how things work now. But can you continue to deny it?

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