The big short squeeze lost traction at critical resistance. The S&P is facing strong resistance at 2,100 and the Dow at 17,925 to 18,165. Both indexes have failed here recently. The short squeeze was an oversold bounce and it came on low volume of 6.6 billion shares. Today was the lowest volume since April 26th.
Volume dictates direction and a big move like we saw today on low volume shows no conviction. It suggests we will fail at resistance. I do not want to add new long plays only to have them roll over with the market if that failure occurs. I do not want to add new short plays just in case that short squeeze ignited a potential rally. We are already weighted with more bearish plays that will work if the markets fail at resistance. There is no need to add more today.
NEW DIRECTIONAL CALL PLAYS
No New Bullish Plays
NEW DIRECTIONAL PUT PLAYS
No New Bearish Plays