The globex session continues to be active for Nasdaq futures. For a third session we saw price and volume exceed third sigma stats meaning yet another outlier session. Price continued to drift lower after the bell and managed to push down below Monday’s close before finding buyers ahead of the low. From there forward price pushed higher. Heading into the Durable Goods data [8:30am] price was back up to yesterday’s midpoint. The initial reaction to the data is buying
Also on the agenda today we have crude oil/distillate inventories at 10:30am and tomorrow we hear the first round of GDP data.
Yesterday we printed a neutral extreme down. Price opened gap up and pushed higher in the morning to close the weekend gap up at 4197.75. From here we formed a slight excess high then rolled over. Initially buyers defended the second range extension around 4120 and pushed back to the mid, but ultimately sellers overwhelmed the bid and we cascaded lower into the bell.
Heading into today my primary expectation is for buyers to push off the open. Look for sellers to defend from 4134.75 – 4144.50 then roll over to target 4080.
Hypo 2 buyers push up through 4144.50 setting up a move to 4180.
Hypo 3 sellers push off the open, take out 4100 early and target 4050.
Levels:
So Hypo 1 is in effect – now what are you looking for?