August 5

Discord access link: https://discord.gg/UPbu6PZFDp

Initiative buyers showed up today above the 6300 psychological level and were able to prevent continuation of Daily One Time Framing Higher. For most part of the session it looked like we were going to end up with a “P-shaped” profile with buyers failing to fill the gap above due to the heavy resistance at the 6349 BZ level. Sellers gave up and we saw a move at the end of the day that resulted in the gap being filled. This late day move is considered a “spike”.

• Going into tomorrow’s session, the most important task for buyers is to find acceptance within or above the spike since it would validate the late day buying. For sellers it’s all about rejecting the base of the spike. Technically, the base of the spike is 6353.75 but since it’s just a couple of points above the 6349 BZ level, I’m going to use 6349 as the base of the spike.

• By staying above 6349 we are also staying above the “3 week balance area”.

Bullish Scenarios:

• Longs above 6349 targeting 6378.

• Longs above 6378 targeting 6407.

Bearish Scenarios:

• Shorts below 6349 targeting 6320.

• Shorts below 6320 targeting 6262.