Thursday - the market explored lower - below the Spike - got too short which resulted in an afternoon rally upto the 1356 level. The first sign of change will be price acceptance above this level. Yesterday also delivered a Poor Low and a very Prominent POC - which has good odds of being revisited. Coming into this morning - overnight inventory is almost all short, however Value is unchanged. I will be watching the 1360-62 area for resistance. Below us we have the Overnight Low and 1342 area which is a key weekly/monthly reference. The order in which things occur this morning are important. If we explore higher - without first visiting the prominent POC - odds are that we return to it later in the afternoon. Overall the market is quite short which doesn't mean we have to rally, however be alert to the possibility of short covering.
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