The Fed minutes provided an excuse for the bulls to seize even more control of the tape this afternoon. As I discussed this morning, the longer the bulls were able to prevent a failed bounce today, the more likely it was that they would gain confidence as the session moved on. To be sure, we are seeing plenty of oversold bounces in the broken charts of commodity/materials stocks. However, we also have a fair amount of charts that are set up properly and are breaking out. Either way, shorts are on the run today, feeling the squeeze. I see plenty of traders out there who seem eager to short today’s pop. If they continue to get squeezed, one of my favorite custom screens in The PPT will come in handy.
Click on the pic below for full size view.
