Nasdaq futures are a touch higher as we head into Thursday’s trade. We spent most of the session building value higher but sellers managed to defend yesterday’s range high.
At 8:30am initial/continuing jobless claims came in better than expected. There was little reaction to the news. We also have leading Index at 10am and natural gas storage data at 10:30am.
Yesterday we printed a normal day. Normal days are characterized as having a wide initial balance (first hour of trade) that is not breached for the remainder of the session. These day types are usually formed when a news item is released near the open. In yesterday’s trade, for example, investors were digesting the earnings from Apple. This day type shows other time frame (OTF) activity at the open but then no initiative-type OTF for the rest of the session, just local-to-local trade.
The action did manage to close the 7/16 open gap, meaning there are only 4 open gaps left below.
Heading into today, my primary expectation is for sellers to push in to the overnight inventory and close the gap down to 4618.25. From here the overnight low becomes a target 4617 then a push down to test value area low zone 4608.50 to 4606.
Hypo 2 buyers sustain trade north of the key pivot at 4623 setting up a ‘pole climb’ up to 4660 and seek to target the Apple gap up at 4668.25.
Hypo 3 sellers push down through 4605 setting up a liquidation down through the air pocket to 4584.
Levels:
If you enjoy the content at iBankCoin, please follow us on Twitter
my stats are saying 66% for a normal variation day. About 14% chance for a trend day. Normal variation criteria is already met….I’ll be watching for sellers around 4635
now you’re talking my language