I think we have a little short squeeze going on this morning. I have not looked at the composition of the option trade or the futures contracts but maybe some specs came in leaning on the short side, looking for some easy money on an option expiration.
As a reminder there is a two day FOMC meeting this week with their rate decision on Wednesday. My friend Dave thinks this is a setup for that. Perhaps he is right. The price riggers like to take a price up to lure in speculators, and to have their raise their stop loss arrangements, to make the price hit more effective.
This is a bucket shop after all. That is what most of the US markets are becoming.
I tend to watch support and resistance and try not to predict the future. There is some precedent for a smackdown on the FOMC announcement as we all know.
