Although the Dow feels like it could waft blithely all the way up to 20,000, the long-term charts put this week’s gaseous short-squeeze rally in perspective. It’s just a pisher, at least so far, and unless DaBoyz activate the afterburner as the final trading week of 2015 unfolds, the blue chip average is going to end the year stuck in the middle of a massive supply zone that has been accreting layers since November 2014. Alternatively, if the Masters of the Universe can squeeze the Indoos above the 18137 peak recorded back in July, that would leave bears on the ropes as 2016 begins, presumably eager to stampede themselves into a short-covering frenzy. Judging from the way the broad averages have climbed recently with zero bullish buying interest, I’d rate the Big Squeeze scenario at slightly less than even odds.
