November 15

Discord access link: https://discord.gg/UPbu6PZFDp

November 15 Pre-Bell Update

• Overnight Inventory is 100% short. We are currently trading below/outside yesterday’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.

• As of the time of this writing we are trading right around the November 6th single prints. I’m going to be monitoring this area once the RTH session opens to see if this could be a potential area where buyers show up. VWAP is currently sitting just above this area at 5947; this is important to note since there could be a battle between the bottom of the single prints and VWAP. Since Overnight Inventory is 100% short, there is potential for a correction to Overnight Inventory.

• If there isn’t any interest above the open, or above VWAP, and sellers can keep us below 5943, I will be looking to take a short targeting a move that takes us below the Overnight Low. Sellers could potentially take us back down to the 5900 psychological level or towards the 5881 BZ level.

• The options market is expecting a +/- 27 point move today. If I use 5943 as the anchor, today’s extremes could be 5970 or 5916.

November 15 Plan

Today we see the inside day breakout to the downside which resulted in initiative sellers that kept us mostly below the 6000 psychological level. These sellers were then able to fill the gap at 5967 near the end of the day which was the move that everyone was expecting.

• With today’s move we can also say that this was “2-Day Balance” breakout to the downside. Going into tomorrow’s session I will be monitoring for continuation of the breakout. One the case of a move back move the 6000 psychological level I will be monitoring for the “inside day breakout failure” which can takes back to the 6028 BZ level. I have to point out that yesterday’s high is a “poor high” which needs to be repaired. The poor high could mean that the “up auction” hasn’t ended yet since auctions are supposed to end with “excess”.

• If we see continuation of the selling, I will bel looking for a move to the bottom of the November 6th single prints at 5943. If buyers don’t show at those single prints / LVN, I will bel looking for a move to the 5881 BZ level which will place us inside the “post-election gap” that we have below.

Bullish Scenarios:

• Longs above 6000 targeting 6028.

• Longs above 6028 targeting 6057.

Bearish Scenarios:

• Shorts below 5998 or below 5967 targeting 5943.

• Shorts below 5943 targeting 5881.

Nasdaq:

• Shorts below 21,023.00 or below 20,930.00 targeting 20,830.00.

• Shorts below 20,830.00 targeting 20,585.00.

• Longs above 21,100.00 targeting 21,243.00.

• Longs above 21,243.00 targeting 21,488.00.