25May10:17 amEST

Updating an Old Game Plan

Despite crude oil gapping down hard, on top of a disappointing reversal lower int he futures overnight, bulls are giving the old dip-buying playbook a shot here as we head into the long, holiday weekend. 

Typically, with Memorial Day being the epitome of a patriotic holiday, it is rare for markets to swoon into the long weekend. Most market players have already packed it in, and volume generally runs fairly light. Those conditions do not normally favor bears, though we know every moment in the market should be treated as unique. 

At the moment, bulls are doing a fine job of blunting any damage, even minor damage, in tech winners like NTNX SPLK after their earnings. True, ADSK is down about 5%, but that chart may simply need a reset after a strong prior advance. 

In addition, bulls will point to major leaders like AMZN NFLX NVDA all sporting clean daily charts and ignoring the Dow's opening gap lower.

With that in mind, we ought to have a few ideas on the radar if we do see bulls assert themselves with more force as this session develops. Specifically, we may very well get that holiday trading short squeeze vibe, where some of the controversial/hated/heavily-shorted names enjoy a reprieve into the unofficial start of summer. 

Wayfair, below on its daily timeframe, certainly comes to mind. The retail play remains heavily-shorted by some rather vocal bears, too. Note, however, how well buyers have answered the bell off the stock's latest correction in April. Now price is bumping its head against well-defined resistance (light blue line) and looking to plow up through it to ignite the squeeze. 

In order for this setup to be even more enticing and actionable, though, we still want to see the broad market do a better job of sustaining upward momentum, something notably lacking in recent weeks during this tedious, grinding range. 

But if bulls regroup this morning for another push higher, letter W should be in play. 

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