Nasdaq futures are pro gap down as we head into cash open. The move began shortly after Apple earnings were released and is continuing lower as the morning kicks in. Range is abnormal but volume metrics are in line. We are trading right around the gap left open back on 7/16.
At 10am we have Existing Home Sales and at 10:30am crude/gas/distillate inventories. Texas Instruments reports earnings after the bell and will be a key driver behind a the PHLX Semiconductor Index which is threatening a rollover at a major support level.
Yesterday the Nasdaq opened flat and proceeded to range extend down before quickly finding a big and two-way balanced trade ensued. The market appeared to be waiting for Apple earnings before deciding its next move.
Intermediate term, we are trading down into a confluence of prices around 4600 but the market profile is quite thin until down around 4580 range.
Heading into today, my primary expectation is for buyers to push into the overnight inventory and work the gap fill. If buyers can trade north of 4622 then look for a pole climb to ensue all the way back up to close the overnight gap up to 4668.25.
Hypo 2 is a gap-and-go down type open. Look for sellers to press into the cash market early on and trade down to 4584. Look for responsive buying here and two way trade to ensue south of 4607.
Hypo 3 half gap fill up to 4634 then roll back over to take out overnight low 4597.75.
Levels:
