SPX Setting Up For One Final Thrust Higher - Morning Market Squeeze

Key Tactical Takeaways:

> HYG, which has shown meaningful, risk-supportive improvement recently, is about to tap a 161.8% extension target at .... Although some profit taking will be warranted there, stay long against ....

> Volatility remains extremely high in the oil space. The latest bout, which shifted rusk to ..., occurred with Monday's close below 28.25.

> Benefiting from a duration shift on Monday, LQD rallied to the point where it neutralized the bearish near-term trend on Monday. Although our bearish spread recommendation remains profitable, we...

Some Quick Thoughts:

Despite your likely concerns regarding the massive debt burden that has resulted from their involvement, and whether or not you believe they are simply delaying the inevitable, the fact of the matter is that the Fed has been extremely active in trying to prevent another great depression over the past several years. When it comes to price action, there's no denying that the simple presence of this behemoth has prevented the more bearish patterns from unfolding on numerous occasions. Now that the carrot is being dangled in front of investors yet again in the form of what is possibly the largest pandemic relief plan to date, a combination of short squeeze and FOMO momentum is forcing yet another upside extension in the price structure. 

As someone who has seen numerous friends and neighbors lose good, high-paying jobs in recent months, making the pernicious NFP data even more real, it's sometimes hard to grasp the concept of equity indices lifting right back to the highs, seemingly without a moment's hesitation. While it was always our view that the September correction would ultimately prove to be a healthy one that produces another run to new highs, admittedly we felt that the corrective process would take more time to develop. Given the "look" of the rally in both the S&P 500 and HYG in the past couple of weeks, it appears that the rally off of the 09/24 low is ...

Based on the extension-related potential associated with the post-09/24 wave structure, the S&P 500 now has ...

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