February 24
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February 24 Pre-Bell Update
Overnight Inventory is 100% long. We are going to open inside of Friday’s range so gap rules don’t apply. We are currently trading right around the 6057 BZ level which is Las where we have VWAP. I’m going to be monitoring this area once the session opens.
The options market is expecting a +/- 33 point move. If I use 6057 as the anchor today’s, extreme could be 6090 or 6024 (back to Friday’s low?).
With Friday’s large range, I would say that we could end up with an “inside day”.
February 24 Plan
On Friday we saw a large liquidation break/trend day after buyers failed to defend the 6086 BZ level. This liquidation break took us back to the bottom of the previous “14- Day Balance Area”. We can say that this was due to a Balance Area breakout failure after the lackluster breakout above the 6115 BZ level.
Friday’s move left a lot of single prints in the profile. We have some near the bottom of the range between 6039.25 and 6045.50. We have two sets of singles mostly in between the 6057 BZ level and 6086. This is the area I will be keeping an eye on during tomorrow’s session.
We can’t forget that we have a gap below that still needs to be filled; the bottom of this gap is 5909.75. I will be paying attention to this once/if we trade below the 6000 psychological level. We could still have the possibility of seeing continuation of balance between 5998 and 6115.
Friday’s Value Area
VAH 6097
POC 6030.25
VAL 6027
Bullish Scenarios:
Longs above 6068 targeting 6086.
Longs above 6086 targeting 6115.
Bearish Scenario:
Shorts below 6057 if we open below it (RTH) targeting 6028.
Shorts below 6028 targeting 5998.
Nasdaq:
Longs above 21,833.00 targeting 22,046.00.
Shorts below 21,833.00 or below 21,661.00 targeting 21,488.00 followed by 21,243.00.