With the Dow down nearly 200 points in the early going Thursday, it looked like bears had the bad guys on the run. Alas, the broad averages turned up with a vengeance and forged steeply higher for the remainder of the session. Not coincidentally, the bounce came from a ‘secondary’ Hidden Pivot support I’d flagged the night before. The support was a relatively minor one, but that didn’t make it any less likely to produce a humdinger of a rally. The menace of the short squeeze became apparent when it began to exceed some prior peaks on the lesser charts. I posted a mild warning in the chat room when this occurred. Although the squeeze left intact a longstanding downside target at 2090.25, it will have taxed the patience of bears, who must be starting to wonder whether two straight days of favorable breezes is even possible any more. It is, of course, but the wished-for days are unlikely to come when we are wishing for them. The tradable pattern for the moment is the one shown, presumably after the futures have frustrated bulls with a second point ‘c’ low.
