Someone mentioned recently the big jump in short interest (+327K) on May 30th and I have marked it (amber arrow) on the chart. I think it is a typical short ambush with someone or maybe several taking a punt that the price was becoming overcooked and the odds of a retrace or reversal were looking good .Certainly the SP semed to run out of puff until the big jump on Thursday 2nd.
The subsequent sharp rise 3 days later on June 2nd probably gave them some heartburn, possibly some covering as well and if they are still short they would still be hurting considering that it is very likely that leverage is involved. The short interest is tracking down again so that suggests some have decided that maybe it isn't going to plan.
There has been a a battle around 80 cents with the retrace looking like it will hold with 80 cents as support. Volume has fallen so the selling is drying up and consolidation on track. I haven't been around today but I assume the 900K sell order didn't reappear?
Daily COB June 7th
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