December 17

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December 17 Pre-Bell Update

• Overnight Inventory is short. We are trading outside/below yesterday’s range so gap rules are in play. The rule tells us to “go with the gap” if It doesn’t get filled. A sign of stronger sellers is preventing the gap from getting filled.

• VWAP is sitting at 6136 which adds confluence to PLOD/Gap fill.

• Will we see the start of the liquidation break that’s needed to then repair the poor highs above? Or will we continue to balance above the bottom of the zone at 6115? This is what I will be monitoring for today.

December 17 Plan

Even though the session closed inside of the prior day’s range, buyers were able to end Daily One Time Framing Lower and they also rejected Friday’s lower distribution. Notice how we also found acceptance above the 6145 BZ level.

• We ended up with yet another poor high which could mean that the up auction hasn’t ended yet but could also mean that the market is getting too long and we are in need of a liquidation break so that the lower prices attract new buyers.

Bullish Scenarios:

• Longs above 6145 targeting 6160 or 6174.

Bearish Scenarios:

• Shorts below 6145 targeting 6115.

Nasdaq:

• Longs above 22,391.00 targeting 22,570.00 followed by 22,748.00.

• Shorts below 22,300.00 targeting 22,100.00.