Interim Update – 6/19/2021

With the put/call ratio as high as it is and some poorly positioned shorts, we may have just put in the low of the day when traders traded only 88 contracts at 4324. Ticks and momentum both positively diverged. Whether it is the LOD or not, we should be getting close.

As the afternoon drive tees up at 2:00 pm EST, I believe there will be a short squeeze. If not then, it likely will come nearer to the close. I want to alert you just in case. 

If you are short, don’t be too greedy and book some profits here. If you want to take a long position to ride the short squeeze, you should be on alert as we are wedging into a turn at or near current levels.

The internals are brutal today – so this is definitely not the garden variety minor low we have been experiencing. Today likely begins the correction, it does not end it.

A.F. Thornton