I'm going to stick to my gun, they cannot fool me. This is a classic short squeeze. WE ARE GOING DOWN. I already explained the thought process, therefore I'm not going to repeat myself. To read my previous post please click here.
As you see in the chart big institutions could squeeze the weak handed shorts and we got the classic short squeeze. From technical point of view it was interesting to see rally stopped right beneath the up trend channel( see the chart in purple). The parallel blue lines indicate a potential down trend channel. If S&P500 wants to rollover, it must break 1150 and 1131 support levels.
In my opinion exaggerated moves in Forex market is the force behind equity market in recent days. There is a good chance that US dollar has found an intermediate bottom near 76.14. If dollar holds to this level S&P500 will rollover. Please note I would close my short positions if S&P500 could close above 1186; it means rally has some legs.
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