Exactly What We Were Looking For

Almost 2 weeks ago after the market came down from the previous peak high on the 17th/18th, the market broke below the Technical level of 1428 where the retail Technical shorts would consider the break below $1428 a breakdown and confirmation, thus shorting it.

After we came down from the previous peak high, we expected a range to form with accumulation, that formed perfectly last week and then that range to break out, again the exact opposite of what Technical Analysis says it should do, and shakeout the shorts. Yesterday I said price action got shorts' attention, but didn't cause them panic, prices above $1428 today however will cause some of them to start to cover and we may indeed get a snowball effect from that.

You can see the premarket bid/ask to the right in the white box, above $1428 and above the top's breakdown, a lot of shorts are at a loss right now.

This is exactly the volatility shakeout we were looking for and the exact reason we never chase prices like the shorts chased them on the breakdown, but rather let them come to us.