Last night was a strange trading session. The Asian markets followed the US down. The Nikkei was off 4.5%, Kospi down 8%, and the ASX 200 was down 5%. As a result SP 500 futures plummeted another 28.50 points to around 1080. Then the unexpected happened--within a 20 minute period some massive buyer came in and starting lifting all bids in the market. The SP 500 futures almost immediately gained 14 points and went on to recoup all overnight losses. Then futures turned 1% higher. This is a stunning move considering the market was in free fall at the time.
I don't have any proof, but we may have just seen the plunge protection team in action. Just when everything in the world is going to hell, there always seems to be a mystery buyer come in to save the market. The huge move in the SP futures was not in response to any news, which makes the situation very suspicious. I doubt the SEC will ever investigate this considering how busy they are watching tranny porn (see ABC news article).
Oh well, back to your regularly scheduled market manipulation courtesy of the Fed.
Black Swan Insights