When does the selling stop
We now have a pattern of equity selling at the open in 8 of the past 10 trading days.
The next question to ask is, when does the selling stop? There’s also a clear pattern of roughly when the dip buyers return.
Time of the daily lows since Sept 3, on days of heavy selling at the open:
- Sept 3: 10 am
- Sept 7: 10:20 am
- Sept 8: 11 am
- Sept 9: No heavy initial selling
- Sept 10: Noon initially (followed by heavy selling and new lows into the close)
- Sept 13: Steady selling all day but with interim lows at 10:20, 11:20 and 3:10 pm before a bounce into the close
- Sept 14: interim low at 10:50 am ET followed by selling in the second half of the day
- Sept 15: No heavy initial selling
- Sept 16: 11 am
- Today: ?
There’s certainly not a perfect pattern there but between now and the European close is a better time to be buying risk assets than selling them.
This article was originally published by Forexlive.com. Read the original article here.