NASDAQ Level2 Tape Reading
The options screener picked up unusual -Sweep movement on $JetBlue Airways(JBLU.US$, however looking at the level 2 I think the price is in an interesting area to do one of three things.
The level 2 is showing us 4 things:
1. The price is in area of selling liquidity
2. The selling liquidity is acting as resistance at the 5.570 tick so we know that level is an are of short term resistence
3. Since the .570's seem to have all this liquidity, let's look at the chart
So not only is there all this liquidity at the top, the price is actually in a breakout formation
4. If the price breaks out, it could be a straight shot to the next notable level of $5.670 on the GSCO
5. If the price gets going, according to the tape, there is not much in its way for now
There are three possibilities here:
1. The sellers step in and keep down the price by moving sideways
2. The buyers RAMP up orders and volume SWEEPING the selling liquidity
3. The sellers get nervous and pull their orders leaving room for buyers for more upside
I think a squeeze is more likely from the level 2, but buyers need more volume and a lot of it.
I hope you all enjoy your weekend
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