May 27

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May 27 Pre-Bell Update

• Overnight Inventory is long. We are currently trading above/outside last 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 buyers is preventing the gap from getting filled. By opening here we are also seeing the end of Daily One Time Framing Lower.

• VWAP is sitting at 5892 which adds confluence to the 5895 BZ level. For buyers it’s all about finding acceptance back above the 5900 psychological level while for sellers it’s all about getting us back below the 5881 BZ level.

May 27 Plan

On Friday we saw a gap to the downside but the lack of selling below the 5800 psychological level took us back to the prior day’s range. In other words, the gap got filled which is something that stronger sellers would’ve prevented. The fact that Friday’s high is almost exactly the same as Thursday’s low made it a “weak high” which meant that it was likely that the sellers there were “short-term sellers” due to it being right at a visual reference.

• During Monday’s shortened session we saw a move back above the 5881 Balance Zone level. Going intoTuesday’s session I will be monitoring this level. If we open Tuesday’s session near this area it will mean that we are going to see another gap and also the end of Daily One Time Framing Lower. I treat the shortened session the same way I treat an ETH session.

Bullish Scenarios:

• Longs above 5881 targeting 5913.50 (topo of Wednesday’s single prints).

• Longs above 5914 targeting 5940.

Bearish Scenarios:

• Shorts below 5871 targeting the gap fill at 5843.75

• Shorts below 5823 targeting 5764.

Nasdaq:

• Longs above 21,243.00 targeting 21,488.00.

• Shorts below 21,200.00 targeting 20,930.00.

• Shorts below 20,930.00 targeting 20,585.00.