ON session was used by size traders to unload the supply taken in on the way down yesterday, we have been balancing between our 4470 - 4440 zones because we have buyers(trapped shorts) below that and trapped longs(sellers) above that. Today we should see further liquidation off the open using the ON low as reference and the levels. On the down side we have 4420 - 4400 two important levels that if we break and hold below we will see further downside to 4350 area. On the upside we have 4497 and 4520 as a big level that should have sellers over it so if we do get there today we expect there to be more selling at those levels, unless we break them with volume and hold over then that changes things but any weak tests we expect to fail. Another option is we can balance between 4420 - 4497 so keep an open mind to all scenarios.
Comment:
How about the levels today! Important level was 4420, first thing in the morning if you gave it some time for the plays to form, we corrected inventory into 4420 zone, dipped in and found the bid. If entered around 20 was a 60 point trade and once we got close to 4497 our big are that was marked for resistance could have been entered for anther 60+ trade to the lows again to find more buyers. Lets see what tomorrow brings.