Aug 06 Plan

Yesterday’s spike was defended during the ETH session and we opened on another true gap above the previous day’s range. Today was another Balance / Rotational Type of Day at higher prices. This means prices keep getting accepted higher. This gives a clear advantage to the bulls. 

If you notice, today’s low was exactly one tick below the first period’s low. That makes the low a “poor low”. What this entails is that, technically the downward auction hasn’t ended, and the advertising of prices below the “open” was driven by a small long liquidation break. This was caused by the buyers that got themselves too long at the highs, hence the lack of material excess above. 

We now have two gaps below us. Clearly, sellers are very weak sine they haven’t been anywhere near of filling those gaps. Liquidation breaks strengthen the market. It would be healthy for the market to pullback and advertise cheaper prices to see if new buyers step in. Getting some backing and filling by closing those gaps would create more solid footing for this rally to gain some legs. I remain bullish as long as we are above 3267; I’m very interested in seeing the action if sellers can advertise prices on that gap we have below us. 

Today is the fourth session of One Time Framing higher. If sellers offer prices below today’s RTH low (3311.25) it would end the One Time Framing. I would monitor how strong the sellers are by seeing how fast they fill the gap (3300.50). I would monitor the action around 3290 to see if buyers are interested in buying there. If buyers are able to migrate value above 3331 then my next target would be 3352. 

As for NQ_F, buyers were able to hold prices above 11,070.00. Even though NQ_F keeps making new All Time Highs, it should keep going higher to support the ES_F bulls. I wanted to see Value above 11,120.00 but if you notice, there wasn’t a single period that managed to close above this price. Going forward I want to see buyers step above this level. The best case scenario for the bulls is to have NQ_F above 11,188 by tomorrow’s RTH open.