The speed of the move and the corrective action ON suggested that we could be in for a bullish day. This was definitely the case and there were two signs at the open that this was a high probability outcome:

  • the dip down to the cash gap was fast and decisive with a strong move off the level
  • the reaction to the ON high – RES 1 – was there, but it was a very breif and very shallow, suggesting few traders wanting to sell

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