THE FORCE THAT PROPELLED THE STOCK MARKET RALLY WILL EXHAUST ITSELF THIS WEEK $SPX $AMZN $AAPL $MSFT $AMD $INTC $NVDA $DIA $DJIA
The force that has propelled the stock market rally is about to exhaust itself this week. That force is related to a short-squeeze.
Let’s explore with the help of a chart. Please click here for an annotated chart of Dow Jones Industrial Average ETF DIA, which tracks the Dow Jones Industrial Average DJIA.
Note the following:
• The chart shows that 65% of the rally is related to a short-squeeze. As of last Thursday, the S&P 500 was more than 20% higher than its mid-March low, a stunning development.
• The chart shows that many stocks and ETFs fell into the Arora buy zones when the stock market fell.
April 13, 2020