NASDAQ futures are coming into the October nearly flat after being nearly 60 points higher early this morning. Once the European markets opened pressure took price lower after buyers briefly pressed the market up into last week’s range. Volume and range are both extreme on the session which so far managed to hold above yesterday’s midpoint. At 8:30am Initial/Continuing Jobless claims data, an appetizer to tomorrow morning’s Non-farm Payroll data, came in mixed. The initial reaction is selling.
We have a few economic points out at 10am including Construction Spending and ISM Manufacturing.
Yesterday price opened gap up right on top of Tuesday’s range and buyers pressed the morning trade. By 1pm sellers pushed us neutral and by the close were trading just above the daily mid making it a classic neutral day.
Heading into today, my primary expectation is for sellers to press this overnight gap closed. Look for trade down to 4154.50 then take out overnight low 4150.25. From there a test down to 4132.75 where I will look for responsive buyers and two-way trade to ensues. The 10am data may provide the turn/direction on the morning.
Hypo 2 sellers push down through 4132.75 setting up a test of 4100 with a stretch target down to 4083.
Hypo 3 buyers show up right around the gap fill 4154.50 and push higher to target overnight high 4225.75. There is another piece of ‘pole climb’ context above 4238.50 which extends up to 4273.75 which would be my upside stretch target.
Levels:
FYI: getting your posts on twitter via @iBankCoin4tw , your post not hitting my stream, seen this a few times.
Scratch that, just saw it.
Interested in maybe getting my duck-on, today. Appreciate the levels, Raul.