This has been an expensive romance. There hasn’t been a bear squeeze – not on Friday and not today. There were some nice buys bit no bear squeeze.

A bear squeeze:

  • Often sees lower prices at the open to draw the last resistors to the new down trend.
  • Reverses and once it reverses, it doesn’t stop, not for KLs or anything.

Normal reversal and retrace action during a downtrend:

  • Will see new highs sold and new lows bought
  • Extreme move retrace
  • Levels react
This is definitely NOT a bear squeeze – it might have looked like one during the futures session but as soon as it reversed at S1 and then made new a low, the PA was telling you it wasn’t one. It could have emerged later on but this PA was too slow and too choppy – a ranging and not a trending market.

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