I guess DC was right, IBM's AH rally also helps, it looks like the wedge break and reversal was good enough to accumulate enough short interest to squeeze. I would like to see 1312 cleared (tested from above) for a confirmation here. I am not sure this is the late 12-13 day cycle low or it already happened in one of the sharp squeezes from last week. Certainly, we are in a congestion zone and the first break lower is being bought back up, or perhaps simply inflated back up. The next low should be around early next week and hence, this rally can hang in there for a few days.
I did not have much faith in Friday's closing rally, but this is now a better setup. It did find support where I thought it would, so now let's see whether this is the real deal to test the upper resistance areas around 1335-1340...
Best of luck.
Edited by arbman, 19 July 2011 - 02:10 AM.