Yesterday it was suggested to boldly short around 110600, precisely because it was anticipated that there would be resistance at this level, and after touching it, the market would decline. The current trend completely aligns with expectations.
Currently, the support level is in the range of 107500-108300. As long as this range is not quickly breached, there is still potential for a short-term rise. Today is the last trading day of the week for U.S. stocks, and whether it can break through 110600 later tonight depends on the ETF inflow. If it is ideal, then reaching a new high next week is very likely.
Market Analysis
Today we mainly discuss the 4-hour structure.
Currently, we are in a 4-hour rebound that started from 98115 on June 23rd. Personally, I believe this rebound can at least reach 111500 or make a new high, because this 4-hour rebound is structurally very similar to the one in early June, but the difference is that this time the liquidity is stronger and the accumulation time is longer, which can be intuitively felt from the relationship between volume and price.
However, it is important to note that if the short-term price quickly falls below 106000, it means that this 4-hour rebound has ended.
Short-term
When the price drops to around 108300, it should be nearing the end of the current 15-minute pullback. The range of 107500-108300 is a good area to go long, as the short-term trend won't reverse quickly. Even if the trend reverses, there should still be at least one bounce towards 109000 before breaking below 106000, so one should be bold in going long rather than blindly chasing shorts.
