US equity markets are surging out of the gate as a NFLX price hike trumps dismal bank earnings (welcome to the new normal, America).
The S&P topped 2,600 – a one-month high – but for now remains range-bound between a 50% and 61.8% retrace of the December dump…
Nasdaq is outperforming and testing its 50-day moving average for the first time since November…
It appears the squeeze is just beginning, as we noted previously, here are some more details from the Nomura analyst on where the max pain levels for algo shorts are, and where the market will almost certainly rise to before retesting if the short squeeze can push it even higher, or if a new wave of selling will emerge as Morgan Stanley predicted earlier:
- SPX at 2594, Nasdaq at 6581, Eurostoxx at 3066, DAX at 10827, Hang Seng CH at 10363—all would see current “Max Short” covered down to just “-82% Short” if today closes above those levels
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