Squeeze Continues for SPX But It's Now Decision Time: Feb 1st/2nd Chart and Analysis

Incredible squeeze continues for ES and while I think there is more to go here, we are now at an important inflection zone. In yesterday nights e-mail I was looking for a squeeze into upper resistances (4545, 4570s) followed by bears getting a shot and playing out nicely as we approach the upper bounds of this resistance zone.

Essentially, if this is a counter-trend rally (dead cat bounce) it should stop somewhere between a 50-60% retrace of the initial selloff which would put it at 4580ish max. This is consistent with several major resistances there, and also with where relief bounces of prior major sells stopped (Feb 2020 retraced 50% , Oct 2018 did 61%, Feb 2018 50%). Reaction here determines if we goto ATHs or not. Here’s what I’m looking for