Nasdaq futures are higher again this morning, this time on news of a Greek resolution and a vigorous bounce in Chinese share prices. The overnight range is beyond second sigma on above average volume. The session managed to very briefly trade new lows at the start of globex before sharply reversing higher.
The economic calendar is interesting today. We have Wholesale Inventories at 10am and then we’ll hear from Fed Chair Yellen who is speaking in Ohio. We also have the Baker Hughes Rig Count at 1pm.
Yesterday started with a big gap up, right to the top-end of our developing value area. Buyers tested up to the key MCLVN at 4402.50 and were met by strong selling. These responsive sellers became initiative and we essentially formed a trend day down, going back and closing the entire gap and making new swing low.
Thus it likely comes as a surprise, for bears, to see price up this much into Friday. It speaks to the choppy nature of our market. However, amid the noise we have some clear price levels to build context upon. Foremost, the MCLVN at 4402.50.
Heading into today, my primary expectation is for a gap-and-go up to test the low volume area in and around 4402.50. Yesterday’s high in particular will be telling, 4407.25. If buyers can push and sustain above yesterday’s high I will look for a short squeeze to fill the gap up to 4422.50.
Hypo 2 sellers push into the overnight inventory working us back to the MCVPOC at 4390. Look for buyers to sustain price above 4360 as we continue to trade inside balance.
Hypo 3 sellers push down through VAL 4360 and work the overnight gap fill down to 4337 to target overnight low 4331.75. Caution below 4320.
Levels:
dry af
like the Sahara desert
I think this morning’s headline mislead people into reading my dry technical report lol
I guess the US market hours are for losers