Today's Market (3) The current OI is pretty scary... In the past 5 hours during the Asian session, both longs and shorts have been opening positions like crazy. OI is already approaching the highest point of this cycle... We’ve seen OI reach such high levels a few times in June and July. In June, during that one-sided drop, shorts kept increasing their positions while longs aggressively bought in halfway up the hill, only to get wiped out. In July, after hitting several high points, the market mostly ended with violent rebounds clearing out the shorts. With OI this high now, I don’t think we’ll see much deeper downward pressure here today. OI has already reached recent highs, leveraged funds are all in the market, and the bullets are spent... Take another look at Chart 2, the trend from 60k to 82k during April-May-June... When OI hits a high point, it’s usually followed by a temporary end to the intraday move... OI needs to reset, and funds need to exit before the next wave can be brewed...