Following the push

My last post was about the games the heavy hitters were playing. Since November last year it was painful obvious that the big money was pushing down and hard. Any sustained bid would eventually, if not swiftly, be overwhelmed by a mass of sell orders. Which lead to a record breaking 12 down days in a row and nasty 25% fall in the index. But things have changed. Bids are not only getting stronger they are becoming successful in lifting the price. Monday the 21st of April, as per the last post, I think was a warning shot to the bears that the game was shifting again. When you look at the increase in Open Interest you can see the trouble the Bears are now in. 45,000 contracts have been opened in the last two weeks at a rough average of 150 points lower. That adds some nice pain to the shorts and gives the Bulls the upper hand. It will be interesting to see how far they can stretch the rubber band and where they start to off load. Its always dangerous to read to much into the Open Interest figures for the SPI but the little break we have had has been a classic lesson in a large volume push. It started with a trap for the Bears as they tried to print a lower high then the next day, as per last post, a very aggressive buying day. Then a little bit of unloading and finally a push and break above highs into the squeeze zone. Will be interesting to see if the Bears take this one on the chin and cover or try to push back into the old range below 5670.