Last night there was news of an IMF bailout that was quickly rebuffed. Futures gapped up on 25 handles. After the denial hit the wires, your friend and mine, Zerohedge comes out with IMF Package Denial Sends ES And EURUSD Tumbling. Market did not take out opening print and then rallied 20 more handles.
In the current market environment, news does not play out like it should and largely believe they use news to get things done anyways. The market reacting in this way tells me a couple things. Either there were a bunch of stops above 1180 or there is significant bullish news coming out later in the week, that can only be interpreted one way. Maybe jobs number is blow out, but it appears someone knows something.
Moral of the story, this market is different and perfect information is rare to come by. Have a reason for a trade.
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