ES Jams the Shorts in Reaction to More QE from Mario

ES (Emini S&P 500) did an excellent job of trapping the shorts yesterday, in the aftermath of the brief breakdown from a Megaphone Formation.

Of course, Easy Money once again trumps technical analysis, especially when the bullish pattern breaks down, and "requires" either lightening long positions, or hedging with new short ES positions... creating a near-term bearish posture that becomes ripe for "QE abuse."

Now that ES has spiked to a new recovery high, no doubt fueled in large part by short-covering, the next key issue is whether or not the upmove from 2007.50 to 2039.75 is the final upmove of the post Sept 29 advance, or the initiation of a much larger upleg that is heading for the upper-channel boundary zone in the vicinity of 2070/80?

Today's final two hours into the close should provide some clues.