I just watched the Emini price changed bias from bears to bulls, the 34.50'swere getting taken on the bid but they wouldnt go offer, it was like the tape was stuck, then it sped up and buyers took it higher even though there were very few bids at the 34.50's. is this what you are talking about.
Yes - now step back a bit - and look @ the 'mini-trends' the ES puts in on a daily basis. First, you see people pile in as above & the market pushes up 4 points.
Then it comes back down 2 points.
At this point, you have longs in profit and shorts in a bit less profit.
You see someone step up on the bid and start absorbing the selling.
At this point, you have 1500 Johnny Futures Long, 1500 Johnny Futures short, 7000 Johnny Futures trying to figure out what to do next.
How do the longs feel @ this point?
How do the shorts feel @ this point?
How do the 7000 feel?
Now price moves up a point.
How do the longs feel @ this point? :clap:
How do the shorts feel @ this point?
How do the 7000 feel? Like taking a long, like taking a short? People want to trade, they are itching to trade. What is the trade they take?
What is the path of least resistance? Is there any?
Is there a tendency for new sellers to pile in at this point?
Is there a tendency for new buyers to pile in at this point?
Is there a tendency for the sellers to chicken out & close their positions at this point?
Is there a tendency for the buyers to chicken out & close their positions at this point?
A lot of people, all with different perspectives. Some in, some out, some long, some short.
Still - what keeps the shorts OUT is the same thing that keeps the buyers in - perception that it will move up. Motivated buyers, demotivated sellers.
So then you sort of turn full circle and end up back where you started, which is why people think it was going to go up in the first place.
It's a bit like throwing a snowball down a hill and ending up with an avalanche...
