Nasdaq futures are currently gap down a bit as we head into the final few days of trade in 2014. Volumes and range are both normal but on the low end of 1st sigma suggesting participation is here today but perhaps a bit light.
Sellers managed to print the two major rotations of the session. It looks like a bit of follow-through on the late-Friday selling. Overall the price action was contained inside of Friday’s range.
The intermediate term is neutral-to-bullish. We can see the market coming into balance (overlapping value areas) with the exception of Friday when price went exploring higher.
The high of Friday looks a bit vulnerable even though the market found some sellers late in the session. That initial impulse of selling Friday may have already seen its follow through during our globex session.
Early on I am looking for buyers to push into the overnight inventory and close the gap up to 4311.25. If buyers can sustain trade above 4304.75 then I will be looking for a push up to test overnight high 4320.75 and beyond to the prior swing high up at 4323.75.
Hypo 2 is a push lower to take out overnight low 4298.25 opening the door to target the mCVPOC at 4295 and Friday low 4293. If buyers are not found here then sellers will likely target last Wednesday’s VPOC at 4290 then a closing of the Christmas gap down to 4281.50. Expectation is we find responsive sellers down here.
Hypo 3 strong drive up, take out overnight high 4320.75 early and target the 11/28 gap fill up to 4333.
I have highlighted these levels on the following volume profile chart:
