The issue is not really liquidity, its more of where we are at in relation to the overall trend. Pull up a daily, and look at the trend. We are in the 'pullback' area after 7 straight bullish days.
How does a market pullback in a strong trend ? It USUALLY pulls back rather weakly.
Look at today. Low volatility, weak churn down. Classic weak distribution during a pullback. Historically, based on my trading plan, this is normally not very profitable day for me.
So while you can chalk this up to liquidity reasons, its also nice to know the reason behind it so u can plan your trading day accordingly. Traders make money when there's uncertainty, fear, and greed. I would rule all three of these out during the pullback of a powerful uptrend.
Sometimes, the best thing u can do is to sit on hands.
