Nasdaq futures are higher overnight on a balanced session of trade featuring normal range and volume. The most prominent feature of the session is a unidirectional rotation up that occurred from about 8-9pm eastern. The action managed to exceed yesterday’s range high slightly before finding responsive sellers and churning in the upper quadrant of Tuesday’s range.
The economic calendar heats up today, with Industrial/Manufacturing Production stats at 9:15am followed by Fed Chair Yellen’s Semi-Annual Testimony to The House Financial Panel. At 10:30am we have crude/distillate inventory data, at 2pm the Fed Beige Book, and at 3pm Fed Williams is talking economic outlook in Phoenix.
Yesterday we continued auctioning higher for a third day. The action was dynamic enough to leave behind yet another open gap after buyers came in and drove price higher off the open. Buyers managed to push up into the upper-most volume distribution which established a clear MCVPOC at 4530. Sellers were responsive at these levels and we faded slightly into closing bell.
Heading into today, my primary expectation is for a choppy open. Between the 9:15am data and Ms. Yellen starting her talk at 10am I suspect the market will go into wait-and-see mode. At some point I will look for sellers to push into the overnight inventory and close the open gap down to 4518. From there I will look for sellers to take out overnight low 4515.50 to ultimately target the 4500 century mark.
Hypo 2 buyers hold the overnight gap and we continue pushing higher to take out overnight high 4532.50 and potentially make new swing high.
Levels:
