Stronger than expected Nonfarm Payroll data has markets on the move this morning. It was interesting to watch gold react ahead of the data and then a buy-sell-sell reaction from the Nasdaq. As we head into cash open price is pressing the low of the globex session and the low-end of our current value area.
Also on the calendar as we wrap up the first week of March is the Baker Hughes Rig Count at 1pm and Consumer Credit at 3pm.
Heading into today, I am expecting a 2-way open auction to start the session. Then I will look for buyers to attempt a gap fill up to 4450. Like Tuesday and Wednesday, if they are unable to do so then I will look for sellers to step in and press the lows of this week’s range. If buyers cannot defend yesterday’s low 4432.75 then I will look for a move to target the NVPOC at 4418.
Hypo 2 is buyers close the overnight gap to 4450 and sustain trade above it to set up a leg higher. If they can sustain above 4465.25 then look to target the gap up at 4478.75 and then swing high.
Hypo 3 is we stick around 4450 and close the week out flat.
Levels are highlighted below: