May 19
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May 19 Pre-Bell Update
Overnight Inventory is 100% short. We are currently trading below/outside Friday’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 right in between the 5900 psychological level and the 5910 BZ level. VWAP is sitting at 5915. All of these references add confluence to Thursday’s single prints. I’m going to be monitoring buyers abilities to keep us above the 5910 BZ level.
• Since Overnight Inventory is 100% short, I’m going to be monitoring interest below the open or sellers’ ability to take out or keep us below the overnight low. If they can’t do this, I’m going to look for a correction to overnight inventory. If I miss this trade/scenario and we see a bounce towards Friday’s low, but sellers fail to fill the gap, I will look for a short.
May 19 Plan
On Friday we saw a nice excess low which resulted in initiative buying above the 5940 BZ level. The session was a trend day that left single prints in the profile between 5948.50 and 5949.75 and from 5957.25 and 5957.75. There was a big liquidation break after the RTH close so for now, those single prints are considered unfilled— they need to be filled during the RTH session.
For sellers it’s all about ending Daily One Time Framing Lower in order to fill Thursday’s single prints and retest the 5900 psychological level. For buyers it’s all about finding support above the 5955-58 area. Here we have the 5955 BZ level, Friday’s overnight high, and Friday’s single prints.
Value Area
VAH 5975.25
POC 5974.75
VAL 5940.75
Bullish Scenarios:
Longs above 5955 targeting 5969.
Longs above 5969 targeting 5998.
Bearish Scenarios:
Shorts below 5950 or below 5940 targeting 5910.
Shorts below 5900 targeting 5881.
Nasdaq:
• Inside Day Rules.