It was of course unthinkable that the stock market would decline for two consecutive days. But bears shouldn’t despair, since the short-squeeze rally was noticeably lacking in vigor and could fade quickly. We should respect the minor bullish impulse leg that ended the day nonetheless, but if it should fail to reach its 2379.00 target (see inset) overnight, that would add to the evidence that Wednesday’s lows are likely to be revisited. Night owls can use the green line to trigger a bull trade, but be prepared to take at least a partial profit if the implied rally reaches p=2370.50, since that could be it for the night. A relapse to below c=2362.00 would change my parameters, so please take note. This seems probable, since DaBoyz will probably need to bring the futures down a bit more to exhaust sellers and set up a second-wind short-squeeze.
