Digestion

SPX above 4232 intraday gave it a 4376 hrly gap fill PT to hit should USD + 10Y pullback with my USD/10Y ratio falling from 325 to now 305. We are there.
(For QQQ it was above 362 intraday then 366 on way to 370.)

Now that we are there, we should have some digestion; otherwise, we shoot up to 4400 unless/until BONDS get a bid.

Also, I'm still waiting for BTCUSD to rollover before next surge of VOLATILITY.

This short squeeze is not short-covering, but LIFO put buyers getting taken out by market makers. Remember, market structure using options suppresses volatility:
"High implied volatility from put buying around events can provide energy for a rally if the market fails to realize the vol. Delta decay forces dealers to buy back short hedges, driving the underlying higher. This is why we sometimes get a nasty head fake higher on bearish news."

As discussed pre-market:
"Shorting In The Money put options has become such a popular strategy that options market makers have no alternatives but to be bullish."

In support, when bond yields drop and VIX falls.

Most of the time, it doesn't last but it is very powerful when it triggers!

As I wrote yday,
"The rate of descent is slowing" in breadth destruction, and as I point out: NET BUYING picked up last Wed toward the close, Thursday before the close, and Friday at noon after Europe closed. And it has continued with sentiment for seasonality driving the FOMO crowd exactly as market makers bid up the underlying.

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