What is the Plunge Protection Team?

The Plunge Protection Team is supposed to be just a myth, an urban legend, right?

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On Aug. 1/07, the markets broke below support, was getting ready to crack, and plunge to the downside. But then something funny happened in the last hour of trading:



Fast forward to today. Again, the markets were getting ready to crack, and test the lows of the day. But again, something funny happened in the last hour:




What do the two pictures above have in common? The following 4 curious characteristics:

1. There was a huge, monster rally that occurred in the last hour of trading. 28pts in the first one, and 40pts in the second one.

2. The rally was preceded by wide ranging bi-directional swings marked with numerous pullbacks and reversals.

3. Throw that Fibonacci out the window (along with the rest of your technical indicators), as the last hour rally had absolutely no retrace (for most of the hour too), as confirmed by the smoothness of the 20bar MA.

4. Prior to the rally, there was no consensus between the bulls and the bears.


So, after duking it out with the bulls for most of the session, and gaining the upper hand, the bears suddenly and more importantly, in complete unison, decide to capitulate? And yet, on two separate occasions, this has happened. How strange....

If I didn't know any better, I would guess that the bears were interfered with today..... but the PPT is ****supposed**** to be an urban legend, so it is what it is.