Overnight inventory is 100% short. For today - I am going to monitor where Value develops with respect to y'day's prominent POC. With better GDP numbers coming out this morning - the market has rallied back into yday's upper distribution. Key references for this morning are the 1411-1412 area as first level of resistance. If that gets taken out then we are looking at y'days high. Support is at the 1400 level. Overall the market remains quite short. If we single print out of yday's range to the upside - the next level of resistance is the 1420.50 area.
I see that last 2 days as Balance. Balance trading rules apply. Above us we have a Gap which is excess and 1418-20 area which I am treating as resistance. Below us we have the 1400 level which may act as support.
Last 2 sessions including the overnight is fairly balanced. We have a prominent POC from yday which has high odds of being revisited. Overnight inventory is all long. The trading question for this morning is do we open in or out of Balance and to what degree? Do we close the Gap above and fail - or do we close the Gap and accelerate. Those are the scenarios.
