Nasdaq futures were flat heading into today’s session. Action overnight was balanced and contained inside yesterday’s upper quadrant. Volume and range were normal for a globex session. At 8:30am CPI data came out in line with expectations and created no reaction.
The big economic data looms for tomorrow when we shall hear the Fed rate decision. Other items for today include NAHB Housing Market Index at 10am and Net Long-term TIC flows at 4pm.
Yesterday we printed a double distribution trend day. It was stronger than any hypo I wrote for the day, and price managed to trade right up to the 8/20 open gap at 4363.50 before finding sellers and rolling over.
Heading into today, my primary expectation is for seller to test down to the overnight low 4335. Look for responsive sellers at 4330 and two way trade to ensue. Buyers may want to work up above yesterday high 4364 and see if there is any order flow above.
Hypo 2 is sellers push down through 4330 opening up a move down to 4307.
Levels:
