SPY 02/05/2006 QPivot to QS and 2/23/2011 QQQQ QPP

English Bob: Above chart shows SPY w/ quarterly pivots, and I attempted to circle all two day traversals of one pivot level to another. Fridays are highlighted in magenta. Those moves were pretty common in Sep/Oct 2008 and often reversed themselves.

I agree it was probably not a PPT move--volume wasn't great enough, internals were not bad enough, and ES was not able to climb above overnight highs. I was prepared for a PPT move yesterday on the 95% NYSE down vol day, but it never materialized. I expect one eventually.

Billy: SPY bounced on the strong support confluences of SPP, QS1, MS1 and WS2. It was probably too tempting for market makers to cover their naked shorts here. I think it is more what’s happening than true institutional buying or PPT intervention. I have to check but I think the last time SPY dropped from QPP to QS1 in 2 days was in September/October 2008.

Update on 2/23/2010

Billy: Remember that QPP produces a much better support strength than the 50 dma and here market makers clearly supported prices at MPP just below QPP.