As of 2PM EST, I have re-run the math on Squeezy's appetite. He's had his fill and is done jumping (at least for 300 basis point moves higher).
I have outlined Squeezy The Short Squeeze Shark's resting zone in the green shaded waters below. Dear Depressionista, don't doubt that he's down there for one second. There is a meaningful level of intermediate TREND line support now between 815 and 851 in the SP500.
Above that shaded green buy/cover range you have a line that Squeezy will snap at - that's the green dotted line at 880. I think this market will definitely find some volatility between where its currently trading and my refreshed top end of the immediate term TRADE range (dotted red line) at 920 in the SP500.
What are the catalysts for 920? More of the same. What are the catalysts for a selloff to 880? Selling on the news...
Between now and Friday's market open we will have 3 community's issue "news":
1. US Retailers (same store sales)
2. US Bankers (stress)
3. US Employment Report
All 3 of these constituencies will be spinning their wheels trying to tell you why Squeezy has been chomping on the shorts since March the 9th. Come Friday morning, all of this will be news that's in the rear view mirror.
Keith R. McCullough
Chief Executive Officer