Nasdaq futures are pro gap up for the second consecutive day of our holiday shortened week. Price trended higher overnight, pushing into the bottom quad of the 8/20 range before finding any sellers. Range is extreme but volume is only elevated—which is typically the behavior we see on the way up.
The only economic event was MBA Mortgage Applications at 7am. There is also an Apple event scheduled for today which tends to whip the overall market around a bit.
Yesterday, and I can’t make this up, we printed the 10th consecutive neutral day. It was a big one too. Actually, it was a neutral extreme day because we closed near session high. This meant bulls had strong directional conviction to hold overnight.
Heading into today, my primary expectation is for bulls to probe up above overnight high 4369.50 and see what sort of order flow they find. If sellers no show then it’s pretty thin up to 4436 (crazy, I know). Look for a move up the thin print then responsive sellers around 4436.
Hypo 2 sellers work into the overnight inventory and test down to 4318.50 where responsive buyers defend and two way trade ensues.
Hypo 3 sellers step in heavy, close the overnight gap down to 4298.75 and start us on our path back through the near term range.
Levels:
