December 6

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December 6 Pre-Bell Update

• Overnight Inventory is short but as of the time of this writing we are trading back near the 6100 psychological level, near the overnight high. VWAP is sitting at 6089 which adds confluence to that 6086-91 area I wrote about on the plan. This late ETH push could be treated as a “spike” with the base at the 6090 area.

• I’m going to be monitoring buyers’ ability to keep us inside yesterday’s value area. Yesterday’s high needs to be repaired.

• The options market is expecting a +/- 21 point move. If I use 6093 (yesterday’s POC) as the anchor, today’s extremes could be 6114 (6115 BZ level?) or 6072 (back to Wednesday’s low?)

December 6 Plan

For most of the session buyers kept us within/above yesterday’s upper distribution but the trapped buyers at the poor high spaced a liquid break that took us back below the 6086 Balance Zone level. I’m going to treat this last part of the day the same way I would treat a spike. I’m going to treat 6086-90 as the base of the spike. If sellers can keep us below it, they will be validating the late day move. If sellers can keep us below, they would also be keeping us below/outside today’s Value Area since we have today’s Value Area Low at 6091.50 and yesterday’s Point of Control at 6086.50.

• Trading below today’s low during tomorrow’s RTH session will also end the possibility of continuation of Daily One Time Framing Higher.

• Today’s high, which is the All Time High is a “poor high” since it only has two ticks of excess. This means that the up auction hasn’t ended properly since auctions are supposed to end with excess.

Bullish Scenarios:

• Longs above 6093.25 (today’s POC) targeting 6100 or 6115.

Bearish Scenarios:

• Shorts below 6086-91 targeting the gap fill at 6068.25 followed by 6057.