Did American Government directly enter the market and buy up the stocks?

Let me repeat it, only Government activity will try to only protect the line. When the price bounces beyond the line, the buying support just disappears suddenly.

Hedge funds buy baskets of stocks when doing so looks good to their models/ algos.

The Fed is not allowed to buy stocks, they are allowed to buy government securities in open market operations in order to achieve the target rate for the federal funds rate. The guidelines for this are explained in the Section 14 of the Federal Reserve Act. You can find the Fed holdings in the Federal Reserve Statistics

I like that you are trying to think things out, though.

Posting your thoughts is a good way to learn, if you keep an open mind and research the better replies to your posts.
 
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The Fed official with the brainstorm for saving the stock market in times of emergency was former Fed governor Robert Heller. In a speech he gave shortly after leaving the Fed in 1989, Heller said that so-called circuit breakers would not be enough to stop an accident in the financial markets. Under emergency circumstances, Heller said the Federal Reserve should become the buyer of last resort by directly purchasing stock futures contracts in an effort to prop up Wall Street.
 
futures contracts

SPX has a market cap of $38.2 trillion. How much money is invested in SPX futures contracts right now ?

From August 6, 2014 :

Everyone!

I am curious about your opinion about these days market.
No volume, no momentum, no trend.
No matter the stock is up 10 or down 15 %, the movement of the day trading time is always less than 1%! which means it already being set up 9% or down 14 % from the beginning of the day! And left only 1% to play you!

And almost all the stock move the same way, same direction!

The market is very strange these days!

The only thing can be explained for this phenomenon is the market is totally being controlled by one financial association(banks, funds etc) And they set the tone for market everyday!

Any opinion?

Did this ridiculous opinion of yours help you trade better ?
 
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I think I missed one very important point: even if the future can be manipulated, the short term trend of the stock will be affected, but the long term trend will not, as the future has the
Due date settlement based on the stock market price.
 
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