There’s a fair case for the high being made here in the open of the US trading session but if we fail to make a high and sell off to a new low here this will trigger an exit of all bearish positions. This includes all short call spreads, short indices and long puts.
Little bit of patience required to see if we reject the open rally. If we do, the short could be good. If not, the risk of strong move against us is too high and full exit of shorts. Further bias pending review of what happens next.
"...if we fail to make a high" --What level do we need to reach to be considered "a high"?