Trade volume is high overnight in the Nasdaq futures after we printed a 3rd standard deviation range during yesterday’s session. The session range overnight is within the realm of normal even under the high volume circumstances. Prices managed to take out yesterday’s high of the session before finding sellers and the selling accelerated just before we heard from the Bank of England who released in-line Asset Purchases and Target Rate Decision. Initial and Continuing claims were released at 8:30am the claims were lower than expected suggesting the labor market is improving. The initial reaction to the jobs data is a slight bounce. Mario Dragi is set to speak at 11am which has the ability to move markets.
Yesterday’s move was large enough to consider returning the intermediate term timeframe to balance. Thus I have added a profile to the left of the chart which encompasses the range of recent balance and also gives us a good view of the auction taking place. I have noted the key price levels on the following chart:
On the short term we can see how elongated the market profile became during yesterday’s large move. This type of structure suggests buyers sharply rejected lowers prices with a strong response. Whether they have the conviction to defend their progress today will be key because the expectation is they will, at least for a day or two. I have noted the key price levels I will be observing on the following market profile chart:
Primary hypothesis – buyers active on the open, pushing into overnight short inventory to close overnight gap to 4031.75. Chop and rotation sustains above 4014 before a test of yesterday high 4041.75 and overnight high 4047.75
Hypo 2 – buyer driver makes a quick run at yesterday’s high 4041.75 and ONH 4047.75 to target the LVN cluster at 4053.25 – 4050.25 where we find responsive selling
Hypo 3 – buyers cannot fill overnight gap to 4031.75 suggesting unexpected weakness. Take out HVN at 4014 and slide down the slip zone to 3993.75 and work through 3979.50 then 3965
Stay on Your Toes.. Sir Raul and all you Beautiful People.
‘Lost in Motion II’
http://youtu.be/Lxl3AuL3_Qs
*posted this here 4wks ago on the fan~tabulous Sir Raul blog ..September 8, 2014 at 2:26 pm. There was a reference made at the time of the dreariness in the accompanied tune to this choreography/ballet : “Avalanche”
Performed by Leonard Cohen.
Yeah..Pretty dark, alright. This performance was exactly how I felt at that moment.
Sheesh, please tell me that you did just that^?
So many things on watch to buy/add back here.
Joe’s Jeans Reports 79% Increase in Net Sales to $52.7 Million for the 3rd Quarter of Fiscal 2014
Nice!
all ears.. cc
😉