My gut feeling is that the short squeeze that DaBoyz popped off yesterday’s low won’t get very far. The chart shown allows for this with a “reverse” ABC pattern (aka ‘rABC’ in the chat room) where the D target is lower than than point B high. I’ve never presented such a picture before, and I’ll be interested myself to see whether the unambitious pattern’s midpoint pivot, 2375.75, contains the move. If not, we might expect the rally to continue to the 2397.50 target. If that number is reached or closely approached, I’ll be tempted to take home a short position over the weekend. If you’re game but not keen on using a futures position, you could substitute DIA puts with perhaps two weeks left on them. The trade would still look tempting if the futures fall short of D=2397.50.
