The shakedown in the wee hours of Thursday morning was so brazenly purposeful that we might infer it was executed by shady humans rather than by ethically pristine machines.  It would appear that DaBoyz simply pulled their bids around 5 a.m., allowing the futures to freefall for the next hour or so until the selling completely dried up ahead of the opening. Consider what this accomplished:  Index futures had a strong running start at the bell, putting sufficient pressure on shorts that it went largely unrelieved for the next eight hours.

So what will happen next? Clearly, DaBoyz are finding it increasingly difficult to milk short-covering for more than a fright-mask spurt here and there. But neither have They given up much ground during the quiet intervals.  This has kept bears on a high state of alert, and although they’ve uncharacteristically resisted getting stampeded for the last few weeks, the pressure has been mounting steadily. It is hardly coincidence that the S&Ps have been left sitting an inch from new record highs as the week draws to a close.  If shorts can stay calm on Friday, denying the urge to bolt for the exits, they’ll have an edge when stocks begin to trade next week. Will they? Would you expect sheep to act mellow when the wolves are closing in?