December 19

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December 19 Pre-Bell Update

• Overnight Inventory is 100% long. We are obviously still inside of yesterday’s’ range so gap rules won’t apply. VWAP is sitting at 5964 which adds confluence to the 5969 BZ level.

• We have the Overnight High at 5992.75, just below the top of the Balance Zone at 5998.

• There are some ETH single prints between 5972 and 5975.

• Will yesterday’s sellers re-emerge or  will we see a balance day within the large sets of single prints?

December 19 Plan

On Monday’s plan I talked about the three poor highs that we have above and how the market might be getting “too long”. Whenever this happens there could be a large liquidation break. Today we saw that liquidation break which was also part of the “12-Day balance” breakout to the downside. The selling was very aggressive and left a lot of single prints on the profile.

• We still have an open gap below us from the post Election Day rally. The bottom of this gap is 5882.25 which is just above the bottom of the BZ at 5881.

• I’m going to be monitoring for potential support above the 5940 BZ level. If buyers can keep us above this area I will be looking for a re-advertisement of prices within today’s single prints. If sellers can keep us below 5940, I will be looking for shorts who can take us to the 5881 BZ level.

Bullish Scenarios:

• Longs above 5940 targeting 5969 followed by 5998 or the 6000 psychological level.

• Longs above 5998 targeting 6057.

Bearish Scenarios:

• Shorts below 5940 targeting 5881.

• Shorts below 5872 targeting 5823.

Nasdaq:

• Shorts below 21,661.00 or below 21,488.00 targeting 21,243.00.

• Shorts below 21,243.00 targeting 20,930.00.

• Longs above 21,661.00 targeting 22,046.00.