If I told you that the dollar index would be down 0.8% and crude oil would be up 2.3%, how much higher would you expect the market to be? 1%? 1.5%? Well, we're up 0.25% in the S&P right now as I write. Financials are weak, and the only thing holding this market up right now is that shorts don't want to be short over Thanksgiving and the weekend. Oh and it doesn't hurt to have no volume, which is a good way to stop the selling.
I don't know anyone except the most hard core shorts who remain short right now. Most traders are either long or on the sidelines. With a lack of weak shorts, I don't see any big short squeezes. The remaining shorts are not going to cover on a 2% up move. I am feeling a strong down draft coming, timing it is tricky, but I see it happening within the next 2 weeks.
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