Keep dancing...but closer to the exit
Summer squeeze set up continues to play out
In mid October we pointed out that the set up was looking very similar to the summer squeeze set up (here and here). We have followed the trajectory well. We are still waiting for SPX to touch the 200 day moving average and make the classical overshoot that forced people in. If we are to "replicate" the squeeze move from summer lows to highs, then the overshoot would play out perfectly (3500*17% = around 4100).