Nasdaq futures drifted lower, down into the mid of yesterday on abnormally low volume and range. There seems to be little interest in conducting business during globex with the looming Yellen discussions and perhaps Friday’s GDP data on the horizon.
Today, as I mentioned above, Fed Chair Yellen will be testifying for a second day. Today she meets with the Financial Services Committee at 10am. We halso have month-over-month new home sales at 10am and oil/gas inventories at 10:30am.
The trend continued yesterday, intermediate term, where buyers are in control. The last few days have been buyer controlled. Yesterday we managed to briefly take out the prior session’s low 4429.75 before finding responsive buyers who took us to new swing high prices.
Heading into today, my primary expectation is for an open auction in range to push into the overnight inventory to close the gap up to 4450.25. From there I will see if buyers can take out yesterday high 4455.75. Above there I will look for signs of responsive selling.
Hypo 2 is seller push down through yesterday’s VAL 4442 to probe yesterday’s session low. Look for responsive buyers around 4430.
Hypo 3 is drive down, take out 4430 and target 4422.
These levels are highlighted below:
