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The combination of an oversold market and good enough Facebook (FB) earnings may result in a squeeze higher Thursday. If we start to see a trend day higher, investors may pile in and shorts who have overstayed their welcome will be squeezed and pressured to cover.

I’ll also be keeping an eye on the dollar. I’d expect the dollar to pull back as investors exit an extremely risk averse stance. Under this scenario, I’d expect the precious metals and their miners to get some relief as well.

Passable earnings from Apple (AAPL) and Amazon (AMZN) this afternoon could cause the bounce to run for a few more days.

Panning out – with next Wednesday’s 50 point rate hike already priced in – we may be in somewhat of a holding pattern until the next Fed Decision on June 15 once this bounce runs out of steam.

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