February 12

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February 12 Pre-Bell Update

• Overnight Inventory is short. We are currently trading below/outside yesterday’s range which means that gap rules apply. 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.

• We are currently trading below last week’s halfback which is 6036 but still well above last week’s low at 5950.25.

• VWAP is sitting at 6055 which adds confluence to the 6057 BZ level.

• I will be monitoring interest below the Overnight Low or below the open. Lack of interest below these references could trigger a correction to overnight inventory.

February 12 Plan

Today we saw an “inside day breakout failure” which took us back to yesterday’s high and almost to the 6100 psychological level. The Point of Control is virtually unchanged so in terms of “value” not much happened after today’s session.

• Going into tomorrow’s session, I will continue to monitor the 6086 BZ level since that’s the area ins which we have the last two Points of Control.

• The short term goal for buyers is to trade above Friday’s high at 6123.25 in order to end Weekly One Time Framing Lower.

Bullish Scenarios:

• Longs above 6086 targeting 6115 or last week’s high at 6123.25.

• Longs above 6115 targeting 6145.

Bearish Scenarios:

• Shorts below 6072 targeting 6057.

• Shorts below 6057 targeting 6028.

Nasdaq:

• Longs above 21,833.00 targeting 22,046.00.

• Shorts below 21,765.00 targeting 21,661.00 followed by 21,488.00.