Setting up as a Classic Squeeze Top
Todays shocking employment report reaction is a classic in terms of how squeezed markets react. Usually a squeeze is carried out by private interests, but this government (FED) squeeze is a bit of a different animal. There are a lot of parties involved, all following the same Pied Piper, Jerome.
So what usually happens when a squeeze ends is that for a short period, everyone involved closely watches the others. They know they all cannot get out, so it gets very quiet for a while, the main thing is for no one to panic and start to sell. So the rest of us wait and watch, and pounce as soon as the first sign of panic shows, probably next week.