The June contract was getting whacked hard Thursday night, down as much as 26 points earlier this evening. This is bullish as far as it goes, since it suggests DaBoyz are desperate to exhaust sellers ahead of the opening bell. That would allow them to goose stocks sharply higher in the opening minutes of Friday’s session, using whatever short-covering panic they can stir up to push stocks to rich valuations before the bottom drops out again. My hunch is that any buying will be too feeble to spook shorts and that the broad averages will be trading significantly lower than they are now when the week ends. The biggest short-squeeze rally we are likely to see will come in the final hour on Friday. That’s because DaBoyz will not want to press their luck trying to get a major short squeeze going earlier in the day.
