Those Damned Lines

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Today, being not just the end of the month, but the end of the quarter, is sure to be chock full of algo shenanigans. For one thing, the market is absolutely drop-dead pious about some very simple lines. We all know about the ES one, since I’ve talked it to death:


This magical line is not confined to the /ES, of course. It is even more pronounced, and cleaner, on financial stocks, which is my principal focus. Just look at what happened after we slipped above resistance: it changed roles to support, and when the market briefly went weak earlier this morning, it was stopped stone-cold.