Stock, Option and Futures Trading
We said the 11,750 level was going to be important and if it held the market was still in the condition to short squeeze. We are up +245 on the DOW as I write this. It is a shame LVS retraced as much as it did but if you use the 11,600 as your stop on the options you would still be in LVS.
We could have had the fake out to the downside to get people short and now we are starting the short squeeze that will follow through next week.
Just like 11,600 was important now the 11,750 is the important level to watch for support. We will do a full update over the weekend.
Anytime I see a move like this I always look back at the last low and think it looks like the head of a inverse head and shoulders. Symmetry support is .786 so that means the DOW could still come down to 11,800 and still be bullish as it builds higher lows UNTIL the bigger time frame kicks in to take us to a new high.