Nasdaq futures printed a balanced session overnight on normal range and volume. After a brief pop late Wednesday evening, price pushed lower and took out Wednesday’s low 4123.25 and found responsive buyers just ahead of the 1/20 low at 4109. Since then price has traded in a quiet 2-way manner. Earnings have sent the share price of BABA lower as well as CELG. COP is trading a bit higher. We have reports out of GOOGL and AMZN after market close. The Initial/Continuing jobless claims data at 8:30am came in a bit better than expected and we saw a bit of buying on the news.
Turning to the charts, sellers are in control on the short term timeframe. Yesterday we printed an outside day after starting the day gap up above Tuesday’s range and trading all the way though it and closing on the lows. Intermediate term is neutral as we continue working through a multi week range.
Just below the overnight low 4111.25 are some interesting price levels dating back to the last swing low. In particular, the naked VPOC at 4101.25 which we left behind when we turned upward. This level will be interesting to observe if sellers step in this AM.
Early on my primary expectation is for an open auction inside Wednesday’s range which gives way to selling. Sellers will look to take out the overnight low 4111.25 and continue down to test the NVPOC at 4101.25 where we find responsive buyers who work back into Friday’s range and up toward the MCVPOC at 4144.50.
Hypo 2 is buyers push early on and stall out near the MCVPOC 4144.25 churn a bit, before initiative sellers step in and work us lower to target overnight low 4111.25 and potentially the NVPOC at 4101.25.
Hypo 3 is an open drive higher, take out the MCVPOC at 4144.50 and continue higher to test the scene of the FOMC breakdown up at about 4172.
Hypo 4 is we drive lower and take out the NVPOC at 4101.25 and tag the MCLVN at 4083.25, if no responsive buying there then continue lower to the CHVN at 4053.75.
I have highlighted the above levels on the following volume profile chart:Twitter