we are within 10 points of a major squeeze whether it comes from the 76 area r10 or we trade down to 67 is what I can't answer for sure. As of right now the area to project to is ~1312. if we tag 1267 then that area will move to ~1307 Short side is very heavy and lot of fuel to make it happen
Well, we do have that gap on the SPX at about 1273 or so. That's a logical spot for a squeeze. Having said that, there is the potential for things to get out-of-hand, and fast ...
My impression is that pre-opex reversals, IF they happen, happen on the Wednesday or Thursday before opex. On the other hand, triple-witching opex can amplify an already-existing trend.
There was something strange about yesterday's close as well. We hit a new low, but breadth -- measured by adv-decl and up-dn volume on both NYSE/AMEX and NASDAQ -- was positive, while breadth measured in the same way on SP500 and NAS100 was positive until 3:45 before following the futures hard south. In other words, to my eye, the broad market wasn't really participating in the futures-driven flush, with its accompanying arbed-driven dumping of the big stocks. And then, fwiw, there's the VIX, which carved out a lower daily high for the third day in-a-row .... and just before the close. I wonder, Volente ... might your squeeze start at 2:00 pm this afternoon?