Yesterday ECB in its meeting did not cut interest rates and did not announce more QE.  Draghi, ECB chief, has built his career on making the markets move just on talk without doing anything concrete.  Yesterday was no different.  In his conference he was dovish and talked about more easing.  Draghi comments started a moderate short covering which turned into a massive short squeeze as shorts panicked.  It is worth remembering that massive short positions were put on near the  market lows in August and September.