I turn dials and fiddle with knobs to hone in on harmonic rotations
Joined Oct 26, 2011
4,120 Blog Posts

Building A Swing Low

Nasdaq futures are trading flat after working higher for most of the overnight session. Price stalled out just ahead of the major CVN and just below the session high from two Monday’s back (the first Greek gap down). Range and volume were both elevated a touch above first sigma.

On the economic docket we saw Trade Balance data come out inline with expectations. At 3pm we have Consumer Credit. More importantly, we’ll hear minutes from The Fed’s June 16th meeting tomorrow at 2pm. Keep in mind there is also a Eurozone summit taking place right now pertaining to the Greek Referendum.

Yesterday started gap down but not nearly as extreme as futures were pricing Sunday night, instead open within the range/balance we’ve formed these last several weeks. The dilemma now, when it comes to participating with strength, is the nature of our current low—set during globex.

The market has been setting up context pieces like this, and methodically settling them. Take open gaps for example. Yesterday we went and closed up the 6/30 gap before finding responsive buyers then reversing the auction higher and closing the overnight gap.

Overall the market looks balanced/choppy. My primary expectation today is for buyers to push into the early morning short inventory. Look for a push up to take out overnight high 4448 and close the open gap up at 4454. From here, look for sellers to defend the 6/26 range and roll us over.

Hypo 2 is sellers work lower off the open, take out overnight low 4419.50 and push to target the VPOC at 4413.25. From here look for 2-way trade to ensue with buyers sustaining prices north of the 4400 century mark.

Hypo 3 liquidation takes hold, we press down through 4400 and set our sights on 4370.50.



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