The futures typically extend each short-squeeze rally for a few days with a series of marginal new highs, but so far they’ve been unable to better Friday’s peak. The effect of these “creeping” highs has been to scare off the boldest, most resolute bears. Now, tiredness appears to be setting in, even as bears themselves have grown almost terminally fatigued fighting the tape. A promising set-up for laying out shorts? That’s my hunch, especially if the future have trouble sustaining altitude early in Tuesday’s session. We can fine-tune an entry attempt intraday, but night owls may be able to get the jump on the next plunge by shorting any promising downtrend that develops on the lesser charts. To see exactly what kind of pattern I’m talking about, check out these coordinates on the five-minute chart: a=2065.00 (Monday at 4:00 p.m. ET); b= 2061.75; c=2063.75.
