Our last idea mentioned violent swings can shatter an over leveraged trader and bulls and bears get whipsawed into covering...shorts covered big time since yesterday.
What appeared a wave five down to bottom had already finished on the 1st Dec and a wave two up since has rocketed the markets to reclaim almost 2000 points on the Dow! We now sit at an important juncture of resistance....0.786 fibonacci retracement, the 26/11 plunge start and the downward trendline has been touched today.
This Santa rally should terminate around here and let the bulls exit with minimal losses....bear markets destroy both sides as volatility explodes.
Hold short positions or add here, these markets can turn on a dime...anything can occur. Remember, we sell the strength of rallies.