May 13

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May 13 Pre-Bell Update

Overnight Inventory is technically short since most of the action took place below yesterday’s settlement. Buyers defended the LVN near 5840 very well hence the current move back towards yesterday’s high.

• We have the Overnight High at 5885.50 which adds confluence to the 5881 BZ level.

• VWAP is sitting at 5854.50 which is exactly where we have yesterday’s Point of Control.

• ⁃ As of the time of this writing are trading inside of yesterday’s range which means that gap rules don’t apply but we are trading above/outside yesterday’s value area which means that I will be on the lookout for initiative longs who can keep us above VAH.

May 13 Plan

After this morning’s large gap to the upside, buyers were able to find acceptance at these “higher prices”. I’m now going to monitor for continued acceptance above the 5800 psychological level.

• Even though the profile doesn’t have single prints there is a very prominent Low Volume Node which means that today’s profile technically has two distributions. The most bullish scenario would be for us to see acceptance within or above today’s upper distribution. In other words, we need to see acceptance above ~5840.

• Today’s rally stalled just below the 5881 BZ level— this is the next area that buyers need to conquer.

Value Area
VAH 5858.50
POC 5854.50
VAL 5823.75

Bullish Scenarios:

• Longs above 5840 or above 5855 targeting 5881.

• Longs above 5881 targeting 5900-5910.

Bearish Scenarios:

• Shorts below 5840 targeting 5823.

• Shorts below 5823 targeting 5764 followed by 5735.

Nasdaq:

• Longs above 20,850.00 or above 20,930.00 targeting 21,243.00.

• ⁃ Shorts below 20,845.00 or below 20,780.00 targeting 20,585.00 followed by 20,372.00.