Can a market rally on positive delta?
One of the questions I get asked often is “why is the market rallying on negative delta? Shouldn’t it sell off?” Or “how can the market sell off on positive delta?” After all, positive delta in the order flow generally means aggressive buyers are in control of the market. The opposite is true for negative delta, aggressive sellers are in control on the market.
But you are forgetting the opposite side of the equation, the passive sellers.
Watch this video to understand how the market can seemingly defy the laws of gravity.