Nasdaq reclaiming the June lows — squeeze on watch

We spoke a lot about this chart in last week's SMW video and our preferred scenario for today would have been a market puke and a VIX spike, but as we often say, the market doesn't care what we want.

We talked about the June lows as a key line in the sand going forward and the market is trying to make us believe that it wants to be above it. The action today was constructive, but now we need follow through and we need to punch through this cluster of highs/lows around 275 to really kick off the squeeze.

This remains a very tricky environment that can change on a dime, but as it stands right now, shorts need to be careful of an impending squeeze so long as we are over the June lows.