May 21

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May 21 Pre-Bell Update

• Overnight Inventory is short. We are currently trading just below yesterday’s low 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.

• By opening here, we are also seeing the inside day breakout to the downside. For buyers it’s all about getting us back above 5940 which can then result in a move to Value Area Low at 5952. Trading back inside the value area could result in a move back to yesterday’s high since we could get the “inside day breakout failure”.

• For sellers it’s all about getting us below the 5900 psychological level in order to then retest the 5881 BZ level.

• VWAP is sitting at 5930 which adds confluence to the gap fill/PLOD at 5926.75.