Technical Picture - Bear Trap

The bear trap breach of support was short-lived, and a high volume short squeeze resulted in a bullish engulfing hammer reversal bar. This technical head fake should take the wind out of the sails of the bear market. As you see from the intraday QQQQ chart, the bears had no momentum compared to snap back rally off the lows.

The VIX carved out a bearish engulfing bar and will retreat for the short-term. I expect the NASDAQ we'll retest last week's highs in the very short-term.

Today's action encompasses all the elements of a key reversal day.