Another thing that strengthened my conviction was that some of the guys there were actually short. You know, when guys of that caliber are short, and they cover, it's going to have an effect on the price. They are not fools, they had better information and balls than I did a year ago, to actually go short instead of just lightening up, but also they are not fools to destroy themselves when the price goes back up. 300-350 was mentioned as the mental stop loss zone that marks the end of the downtrend and triggers short covering.
Interesting that die-hard believers are actually short. An epic short-covering rally may be in the cards if the short side of the trade is crowded.
However, I wonder if they are short off-exchange because
exchange data does not support the short-covering theory with 80% long and 20% short.