As I board a train for NYC I ask myself the question, “What Now?” The EU news announcement overnight is a good first step but NOT ENOUGH. Make no mistake, we’re going to see a hated squeeze rally higher that will run into July 4th. Did you position yourself short heavily yesterday on the breakdown? Go to a mirror and look at yourself. Don’t put capital like that at risk again, Got it?? Did you go long yesterday? Congrats, deserve to be rewarded for taking the risk.
This rally should do good job of squeezing short sellers with no clue. The guy who buys $TZA because it is the thing todo. For the dedicated who are net short from levels much higher only a QE from both the US and Europe will make them break. That is the ultimate point here all these steps are not enough. The EU and US need to show the market there is no need to their support with bazooka type QE injection. This will be another buy the rumor, sell the news event. Don’t start chasing this long it’ll make you no smarter than the guy shorting yesterday.
I don’t think we’ve have seen the lows for the year yet and until I see QE my SPX target is still 1250.
Resistance: 1359
Support: 1306
