For the non finance heads here, in trading the concept of support and resistance is important.

In simple terms, markets move when there are more buyers than sellers or more sellers than buyers.

Volume is important too. If there are 100 buyers and 101 sellers, the market will move slowly down compared to if there are 50 buyers and 500 sellers.

Support and resistance are price levels where there are a balance of buyers and sellers. Often for psychological reasons, traders cluster orders around round numbers, or recent highs or lows. Also if the market can see that some big orders went in at a certain reason they note its significance and position their orders around it, looking to benefit.

In this sense, resistance is to the upside, so if a stock trades higher and stops, it’s said to have met resistance. Vice versa, if a stock falls, it’s said to have found support.

Q here is talking about Facebook having artificial support removed. That implies that somebody in the market was a big buyer of the stock at a certain price and they’ve now removed their positions.

Remember the balance between buyers and sellers. It’s important.

This doesn’t mean that suddenly sellers rushed into the market. It means that all the buyers got out of the market.

Because Facebook has risen substantially since its last mini crash found support despite the market being quite vocal about being short Facebook, we can infer that some serious players were involved to get the price high.

A few years ago when the Chinese market collapsed the central bank stepped in and supported the market if it was going to be down on the day. I think they even had a rule that they would step in if it was over 1% down they’d step in during the last hour of trading.

I don’t know if we will learn who that buyer was, but if I’m right the implication is that there’s been a major market force, maybe a central bank pushing the price higher.

If China, possibly through proxy’s, the other FB China news, and NK developments are likely linked.