Nasdaq futures are set to gap up this Thursday after a globex session featuring a grind up on slightly elevated volume. The action worked up into yesterday’s big gap down and we’re now lingering just above the high printed yesterday.
At 8:30am we had initial/continuing jobless claims data out but saw little reaction from it. The economic calendar is otherwise open until tomorrow.
Yesterday we printed a double distribution trend day down whose range was inside Tuesday’s. The inside day overall looked weak due to the amount of time we spent trading down near the low.
Overall the market profile structure suggests balance—albeit a big balance, nearly 50 points wide.
Heading into today’s session, my primary expectation is for sellers to push into the overnight inventory and trade lower. Look for buyers to defend the gap, showing up around 4370 and then a push to test the MCLVN at 4402.50.
Hypo 2 gap and go higher. Sustain trade above 4402.50 early and set up a leg up to close Tuesday’s gap at 4422.50.
Hypo 3 sellers push a full gap fill to 4345.75. Look for liquidation to take hold if we breach 4320.
Levels:
the MCLVN at 4402.50 was a wall, that’s my bias line