The economic calendar is quiet this morning but the week is back-loaded with events. Keep in mind Fed Chair Yellen is speaking around 8pm this evening about bank regulation. We also have ADP employment data tomorrow morning before the open.
Yesterday the Nasdaq opened gap up to start the week and sellers were not quite able to fill the overnight gap. Instead buyers stepped in and made a strong drive up early on. Shortly after we went range extension up before falling back to the MID which lined up with the value area high from 2/26. Buyers then executed a second wave of buying, a completion wave. Overnight price has been drifting lower and spent several potions of the globex session trading 1-time frame down.
Heading into today my primary expectation buyers to push into the overnight inventory early on and target a gap fill up to 4478.50 then 2-way consolidation between 4478 and 4463.50.
Hypo 2 is sellers continue to push during the open, take out 4463.50 to test 4460.75. If no responsive buyers show then look for a fast push down the single prints to take out Monday’s low 4449.75. Look for responsive buying at 4447.25.
Hypo 3 is we push up through yesterday’s close 4478.75 and continue pushing higher prices.
Levels are highlighted below: