Earlier I mentioned, "Don't be surprised if price backs off major resistance", shorts are looking for a test of resistance to fail, although we haven't hit major resistance, we did enter the congestion overhead resistance area earlier . Note how volume picked up on the downside move, it was so predictable that I really didn't even have to check the area where volume picked up (but I did any way) and as usual, orders went out right as price moved below intraday support after price backed off the congestion area. I seriously doubt those were long stops being triggered and more likely shorts entering as I had mentioned earlier this morning. We also have the upper former resistance trendline of the bear pennant just below, right now it is considered as support, but it will be interesting to see if price tests that as that would definitely pull in more shorts.
We're already at record NYSE short interest for the year so adding a few more in this area would act as a primer for a short squeeze, most probably starting on a solid break through the congestion area and major resistance.
I'm watching a few different assets classes, looking for the 3C signals to migrate to longer term intraday charts, I really don't need much more in the way of a long hedge, but if there's a good opportunity I'd take it.
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