Nasdaq futures are up a few points as we head into cash open. The overnight session featured 1st sigma range and volume (normal) trading in a balanced manner. Price extended above yesterday’s range and formed a weak, double top at 4203.25 which was also the swing high on 1/30.
Yesterday we had strong early selling which slightly exceeded our 1/29 low 4095.75 before finding a strong responsive buyer. The responsive buyers stepped in before 10:30am thus preserving the initial balance. Buyers then transitioned to being initiative in behavior in the afternoon and made a strong secondary push to close out the session.
Overall, the last 5 days of trade are overlapping but the last three in particular form an interesting view of balance. Given the week overnight high and the quality low below, my initial expectation is for price to work higher and take out the overnight high 4203.25 and continue higher to test the MCLVN 4209.50. The upper target for this move is the MCHVN at 4233.25.
Hypo 2 is a gap fill down to 4183.75 then a move up toward overnight high 4203.25.
Hypo 3 is sellers push into the overnight inventory to close the gap to 4183.75 and push through to take out the overnight low 4165.75 setting up for a move back to the MCVPOC at 4144.50.
Hypo 4 is a drive higher, take out 4233.25 early and work up toward the open gap to 4246 then 4269.25.
These levels are highlighted below:Twitter