Look at chart one, July 10th, market touched lower end of BB, shorts should be covered here. Wait for confirmation of head and shoulder topping. July 13th, market rebounded, if you have bearish view, it’s time to reload shorts. July 14th, hammer, bear should be careful, head and shoulder pattern in doubt, BB open. July 15th, marketed was up with volume, topping pattern broken, bear should stop loss. From then on, market went along on the top edge of BB, BB open even wider, classic short squeeze pattern.
Now look at chart 2, July 28, 29, small pull back, BB narrowed again. Today, gap up open and jumped over strong resistance 984, BB opened. But market was stopped at another resistance 997. Then it went flat line. Day trading short squeeze pattern broken, bear could load shorts around 995 at 3:05 PM, stop loss should be 997. Finally, all shorts should be covered at the end of day since 984 was not taken. Furthermore, tomorrow will have GDP data, final drop appeared more like little bulls don’t want to bet on it. Whole day is a shooting star. If tomorrow gap down open and gap will not be filled, then market form island reversal pattern. However, bear shall not jump all way in since this pattern is really not that a big deal. On the other side, if market moves up, this daily short squeeze pattern is still going on, don’t bet against it.

[color=red:924aa12bd0]I don’t know why I can’t upload chart. But for players, please looked at your two month daily SPX chart, EMA16, 50, Boll 20, 2. That is chart one. Chart 2 is recent 5 day 15min chart, EMA16, 50, Boll 20, 2.
Happy trading. [/color:924aa12bd0]