Bulls Save ES *Right* Where They Had To: April 26th Chart and Trade Plan
It was a textbook lesson today in what a short-squeeze looks like in ES and this something I have written about very often. While severe selloffs can cause bears to celebrate, they are without exception, followed by a 50-100 point rapid squeeze.
Yesterday I wrote: “These conditions which we saw in Feb 2020 as well as January this year, are characterized by “knife catching” down moves, when supports just melt through with price usually pausing briefly pausing at each, followed by violent rapid 50-100 point short squeeze rally”
Of course, where today’s short squeeze began (4195-4200) was no coincidence either - it was support of a 10 month, perfect triangle pattern, and for now this saved bulls from a major technical breakdown and possible bear market. The question now is, is it a dead cat bounce, or a bottom? I will get into it today