February 27
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February 27 Pre-Bell Update
Overnight Inventory is long. We are currently trading inside of yesterday’s range so gap rules don’t apply. As of the time of this writing we are trading right at the 5998 BZ level.
We are going to open inside the value area so I will be looking for responsive trades. I will be monitoring the LVN around the 5992-96; within that area we have VWAP at 5992.
February 27 Plan
Daily One Time Framing Lower has officially ended as we traded above yesterday’s high during today’s session. This is the first sign of potential buyer strength after the recent downtrend. However, despite this shift, sellers still hold the overall control until we see value consistently migrating higher.
Today’s session showed responsive buying off the 5940 BZ level, with prices managing to hold above the 5968 BZ level, which includes the month’s open at 5972.50. This zone will be the key reference point for tomorrow’s session. If buyers can maintain prices above this area, it would suggest continued strength and the potential for a move back towards 5998 and possibly 6028. If buyers can accelerate above 6028 I will be looking for a move towards last Friday’s single prints.
On the other hand, if sellers regain control and push prices below the 5968 BZ level, I will be looking for a retest of the 5940 BZ level, followed by a potential continuation to the gap fill at 5909.75 if that level fails to hold.
It’s also important to note that the market remains within the context of a larger downtrend. Despite the short-term change in sentiment from ending Daily One Time Framing Lower, sellers could easily regain control if buyers fail to hold above 5968.
Bullish Scenarios:
Longs above 5972.50 targeting 5998.
Longs above 5998 targeting 6028.
Longs above 6028 targeting 6057.
Bearish Scenarios:
Shorts below 5968 targeting 5940.
Shorts below 5940 targeting the gap fill at 5909.75.
Shorts below 5909.75 targeting 5880.
Nasdaq:
Longs above 21,243.00 targeting 21,488.00 followed by 21,661.00.
Shorts below 21,175.00 targeting 20,930.00 followed by 20,585.00.