Markets will remain in balance unless something changes that. This could be interest rate decisions (or anticipation thereof). It could be a nuclear missile attack.
It could be a Apple selling USD to buy Chinese Yuan so that they can buy iPhone components.
Apple may sell 10 Million USD (all at once – via Market Order) to buy the equivalent in Chinese Yuan so that they can buy components from China that are used in their products.
This HUGE Market Order creates a short term market imbalance in the market place.
Price was at a fair value before Apple exchanged currencies – but at the time there wasn’t enough USD Buyers to keep price from moving too far out of balance so it appears that price sold off.
This short term imbalance is quickly arbitraged away by sophisticated Algo’s that use AI, Machine Learning Models, and Behavioral Finance to assess fair value and ensure price doesn’t move too far away from value.
Ok – enough of all the technical talk. But before we get to some charts –
The thing I want you to understand about the market is that aggressive market orders may sometimes clear out buyers or sellers temporarily until the market order is completely filled.
Price will move out to fill the orders then price will LIKELY return at some point in the future ( how long it will take depends on what caused the move in the first place)
News can cause temporary imbalance (Trump Tweet) or it can cause imbalance on a longer timescale (Interest Rate Decision).