Heading into Friday NASDAQ futures are trading pro gap up, the third such gap this week, only today the direction is up. As we close in on cash open price is essentially where we started the week. The globex session featured extreme range and volume as the night session continues to be abnormally active. At 8:30am we had some medium impact GDP data out which all read slightly better-than-expectations.
The morning is spattered with medium impact economic data. At 9:45am we shall hear the Markit Composite and Service PMI stats. At 10am the University of Michigan will issue their final read on September Confidence, and at 1pm we have the Baker Hughes Rig Count.
Yesterday we printed a neutral extreme day. The market opened pro gap down, saw an open auction outside range, then sellers worked into the tape and pushed us lower. Price closed up the Labor Day gap (09/03) down at 4194, printed an excess low, then turned higher. Late in the afternoon a short squeeze developed on decent volume and buyers pressed the overnight gap closed to the tick (4264.75) and managed to hold onto the neutral extension into the close.
My primary expectation is for sellers to work into the overnight inventory. With all the economic data this morning we are likely to see choppy conditions. Look for trade down to 4260 but buyers to step in there and target overnight high 4315.75. Then look for two-way trade to ensue.
Hypo 2 buyers gap-and-go up. We take out overnight high 4315.75 early and set our sights on 4326.75. Some churn at this level then a continuation up to 4340.
Hypo 3 sellers hold us below 4300 and then work a full gap fill down to 4247. Look for a responsive bid down at 4240 then 2-way trade.
Levels:
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