Yesterday’s short-squeeze fell well shy of the 1930.00 threshold where I’d said a rally would start to look moderately interesting. That doesn’t mean DaBoyz won’t try their darndest to extend the squeeze for a second straight day.  They may have difficulty, though, since, as you can see in the chart (inset), yesterday’s waft failed to exceed even a single ‘external’ peak. That would be accomplished with a print today at 1913.00, but there’s little value in trying to guess whether this will happen.

Your trading bias should still be bullish, however, and the best opportunity to get long belatedly would come via ‘camouflage’ following a set-up similar to the one I’ve sketched. Whatever occurs, continue to be mindful of the fact that phony rallies on light volume engineered by sleazeballs can take on a life of their own. This one already has, and although I seriously doubt that it will achieve new record highs, if that’s what it takes to turn the stock market into a Biblical Red Sea for bulls and bears alike, that’s exactly what will happen. _______ UPDATE (6:45 a.m.): Even on zero volume in the dead of night, DaBoyz were unable to squeeze the futures to 1930.00, where I’d said the rally would start to look interesting.  The actual high of the 20-point rally engineered by the night shift was 1129.75, two ticks shy of the goal post. A chat room denizen reported getting short at 1929.00, stop 1931.50.  Nicely played!  For any subscriber who did likewise, it’s time to take a partial profit, since the futures have sold off by 11 points. Do NOT get the crazy idea that this is the end of it.  DaBoyz will try again, possibly using Friday’s payroll data to put the squeeze on bears. My hunch, though, is that it won’t have to wait that long. _______ UPDATE (1:56 p.m.): A key-reversal day!  The Dow has plummeted 400 points so far from the overnight high recorded for the mini-futures contract. This delightful turn of events will have trapped more than a few bulls, creating a ponderous layer of supply between 16000 and 16350. Let’s see now if DaBoyz can pull out all the stops on tomorrow’s payroll data to create a rally they can distribute into. With any luck, the ‘news’ will be bearish and they too will get sandbagged, albeit only temporarily.