Flash Crash Potential
We are witnessing a possible setup to a situation where many technical sell signals have the potential of all occurring within one day.
In my opinion in looking at technical indicators that all hit on the same day in May of last year that was what actually happened. The inquiry panel which tried to pin the blame on one big trade had it half right. It did take a big technical trade to set it off, and then you saw traders from many different perspectives all getting technical signals the same day.
The investor/traders who trade on average of every 3 days, 10 days, 30 days, 60 days, 120 days, 360 days, all ended up getting signals the same day. We are now, over the next three days, entering that kind of scenario. Also most technical computer models including 14 of ours have not given a sell signal on the S&P since the September 1 to September 9th period of last year.