The Selling Pressure Squeeze...

Good afternoon - no shock here.

Dear Reader:

If you’re wondering how and why the S&P 500 bounced off that 5,500 level and is fast closing in on 5,700, I go back to March 2022. Last Thursday, we had no buying pressure.

The same thing happened two days before the Fed Meeting that month.

When there is no buying pressure, we start to see short-covering, which becomes a squeeze. Beyond Meat (BYND), one of the worst companies ever (and it’s primed for bankruptcy), gained another 4.2% today. That’s not surprising.

We now have to anticipate. I expect one of three outcomes as the Fed Drift takes this market higher.

One, we sell on Wednesday morning, and we never recover.

Two, we see buying into the FOMC announcement and then selling after 3 pm, which leads us back to where we were last week.

Third, we might see a squeeze similar to the March 2022 period.

In that case, I’m talking about a move that takes us back within 5% of all-time highs.

I’m hoping for the latter scenario because it will do two things.

First, it will allow yo…