Today, I am calling the potential for a massive upside breakout move on what we believe is a massive Short Squeeze position just above resistance in the SPX. Take a look at these charts.
This SPY chart showing our Advanced Adaptive Dynamic Learning Cycles and the Stage 1 basing pattern that we referenced yesterday is still very valid. This resistance channel, near the top of the yellow rectangle, is very clear and we can see prices are tightening near the top of this channel. Our ADLC cycle modeling system is showing a very clear upside breakout – the massive Short Squeeze move.
This SPX chart shows a similar setup with a resistance channel near 2675 and a very clear upside potential to near 2800 or higher. What is interesting about this chart is that the Standard Deviation channels show this move would actually be considered a “reversion trade” – back to within normal pricing channels. This means that we could see a much broader move higher with this upside potential – possibly well above 2850.
This final chart is a 240-minute SPX chart that helps to better understand and see the resistance channel that we expect to be broken today or tomorrow. We believe this downside resistance has setup a massive Short Squeeze position that coincides with our ADL and ADLC predictive analysis technology to indicate that we should see a massive upside price move in the immediate future. As traders, this means we have some real profit potential over the next few weeks with this move.