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After a week of holding above the week ago Monday low and two really big up days on Friday and yesterday, the bounce is getting close to meeting the upside objectives. There is still a considerable amount of possible points higher but the charts suggest it could happen in just one more day. My target to take profits and get short again would be if the NASDAQ 100 reached 15,500. That would just be one more day of the same size of upside that index saw both Friday and yesterday. If it comes today, it may occur before the end of the trading day, so act, don’t wait for the close as a partial reversal is likely. If it doesn’t happen today, it may take a slower, more drawn out approach that lasts for most of this week. Either way, my target is 15,500 based on what I see in the charts.
I think there remains too much short interest. The squeeze needs to deliver more pain IMO. More hedge funds need to capitulate to the upside surge. I suspect this thing will deliver more pain before handing it back over to the bears.. Perhaps building out that right shoulder up around S&P 4700
4700 on SPX is reasonable as a max. target. May not get that far but if it did, not surprising. The DJIA should get the biggest percent retracement followed by SPX with the NASDAQ and NASDAQ 100 a bit less.
Looks like today is just another counter trend Tuesday. Since the most recent trend(for last few days) has been up, today looks like a pause. I expect the bounce to resume by tomorrow, if not this afternoon. As I said above, if it slows down into a more normal and muted rally it will probably last all week. The target is still the same.
Google’s 20:1 split and the positive domino effect on many big cap names … interesting days ahead in the remainder of the week!