Do you notice how we’re unwittingly restricting our analysis to what the sellers did? The offer side of the trading that saw the S&P 500 lose -5% of its value in the span of about 3 minutes – that after it had already declined by over -3% – is a RED HERRING. It’s misdirection – hand wringing over what is irrelevant at the expense of ignoring what is relevant…and what’s relevant is the bid side of the market, that is, what the buyers did.
And more directly:
I’m sorry, but that isn’t an error, THAT IS WHAT WE LIKE TO CALL TRADING.