Futures are pro gap up heading into Wednesday after a globex session featuring extreme range on elevated volume. Price managed to hold well above yesterday’s session low before trending higher for most of the evening. At 8:15 am ADP Employment change came in slightly-better-than expectations and as we head into cash open price is hovering near yesterday’s session high, but buyers were unable to take it out overnight.
At 3pm today Fed Chair Yellen and St. Louis Fed President Bullard are giving a talk on community banking. Investors may be watching closely to see how Yellen’s health has progressed after last week’s near-vomit experience.
Yesterday we printed a neutral day, barely. Just after 10:30am, for a fleeting moment, price went range extension up. Shortly after, excess high was formed and we spent the rest of the day auctioning lower. Around 3pm we pressed neutral on fast liquidation and by the close price was back inside the initial balance.
Heading into today, my primary expectation is for seller to push into the overnight inventory. Look for price to work down to 4100 level where we may see responsive buying. Look for sellers to overwhelm the bid and continue lower to close the overnight gap down to 4074.75 then target overnight low 4066. Stretch target is the open gap down at 4031.25.
Hypo 2 buyers sustain price above 4100 and we make a move above overnight high 4138.75. Buyers target 4147.25 before two way trade ensues.
Hypo 3 buyers gap-and-go up, take overnight high 4138.75 early and set their sights on 4166.25. Potential exists for a pole climb all the way up to 4200.
Levels:
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