ESU14 – Sep E-Mini S&P (Last:1910.25)

DaBoyz have been able to manipulate the futures only four points lower Monday night. Presumably they would welcome more selling, since that would help exhaust supply at lower prices, which in turn would set the stage for the all-too-familiar short-squeeze opening that has driven this bull market from one level to the next over the last five years. My guess is that stocks will open firm on Tuesday, but it remains to be seen whether the strength will be sufficient to spook bears into a short-covering panic. If the future have only risen by perhaps six to eight points in the first 20 minutes, though, look out below, since that will mean that bears aren’t taking the bait — at least not this time. Alternatively, a rally to new record highs in the weeks ahead would probably wipe out the last, and most daring, of the bears that remain. For their part, bulls would be trapped as never before. How high would the stock market have to go before they are “all in”?  In plain fact, they already are “all-in” — if not individually, then by way of institutional proxies such as CALPERS, Federal Retirement Thrift, Metlife, TIAA-CREF et al. ______ UPDATE (2:12 p.m. EDT):  The Dow has fallen 200 points today so far after a weak opening. Look out below, indeed!