Nasdaq futures are trading lower as we head into Friday’s trade. The session was active even before the Non-farm Payroll data but obviously the pace has increased since the data. Range and volume have extended beyond first sigma and it will be interesting to see if the volumes carry into the day session of if we instead see action fizzle out as the day progresses.
Also on the calendar today we have the Baker Hughes rig count at 1pm and Consumer Credit at 3pm.
Yesterday we printed a normal variation down to press the low end of our range. Down there we found buyers who emerged late in the session despite being bludgeoned most of the day with selling pressure. If affirms the idea of intermediate term balance.
Heading into today, I will patiently observe the first hour, allowing the post-NFP dust to settle. However, my primary expectation is for buyers to push into the overnight inventory to close the gap up to 4497.50 and continue to target the overnight high 4506.50.
Hypo 2 is a seller push down to test below yesterday’s low 4473.25. Look for buyers at 4460.50 then again at 4450.50.
Hypo 3 we chop inside of 4473 – 4500 range.
Levels:
After something like NFP do you normally wait an hour before before becoming active?
It depends, the NFP print was outside of the range of estimates, it’s likely to lure OTF into the tape early and I’d rather observe them than predict them, and if/when I find them, trade with them as much as possible.
Nice call on hypo 2