Nasdaq futures are lower overnight on a slightly elevated range but normal volume. Price drifted lower for much of the night session and the selling accelerated after the GDP data came out much weaker than expected.
Heading into today, we are on the cusp of a pro gap. However, due to the large range printed yesterday, we are still set to open inside prior day range.
Yesterday we saw Monday’s selling accelerate down into the Thursday/Friday gap and fill it before finding a strong responsive buyer. Once found we spent the rest of the morning trading higher before fizzling out about half way into Monday’s range.
On the agenda today we have Pending Home Sales at 10am, Crude Oil inventory at 10:30am, and the FOMC rate decision at 2pm.
My primary expectation this morning is for buyers to push into the overnight inventory. If they can push through 4500 then look for a gap fill up to 4515.50 before we quiet down and wait for the FOMC.
Hypo 2 sellers drive down off the open to test yesterday’s low 4471.75 and if they break through look to test 4459 and if that cannot hold then a liquidation trade may take hold.