Market fairly balanced between a broader area $1587-$1564, being $1572 midway support. Basically, no clear bias here. Wait until it clears.
What it is important to note, is the fact that today´s move has wiped out all the long positions that were left from yesterday. This is kind of particular situation, since reference points (in terms of orderflow) tend to be weak. Usually, what I´ve found out in similar situations is that it usually ends up in an important move, in either direction.
I am aware that I am shying away form accuracy with the above, but there are times in which references, bias and views are not that clear.
Therefore, some ideas to have in mind
a-) CONSOLIDATION/ACCEPTANCE OF LOWER VALUE AREAS: sellers still in control keep the pressure – $1565, $1560 & $1555 are key prices points I´ll be watching – the closer they get to $1555, the more complicated for longs to keep their positions, specially in lieu of what is pointed out above in terms of inventories.
A break of $1600 will make me reasses this scenario.
b-) REJECTION AT THE LOWS $1564: The inventory situation described above is providing some support to this scneario – Under it, $1564 has been a (temporary?) low – The idea works like this: Once all longs have been wiped out, there are no more (long) positions to pressure to the downside. Thus, the main alternative for the market is to move up. Since there´s an important amount of players short in the market, the increased buying pressure of newly added long positions helps to bring the fuel for a rally.