NASDAQ futures are heading into Wednesday priced for a gap up. The overnight session featured an elevated range on normal volume. Price managed to hold inside of Tuesday’s range while experiencing big rotations in both directions. At 7am MBA Mortgage Applications came in way above expectations.
The only other economic events scheduled for today is the Crude/Gas inventory data which may see more attention than usually as the OPEC meeting is also taking place in Vienna today.
Yesterday we printed a normal variation down day. Before heading lower price spent time consolidating near the high. All the time spent up at those prices meant lots of volume was transacted at the high, and as a result, we formed a blunt, deformed-looking profile. This is often referred to as a weak high and one that we are likely to revisit.
Heading into today, my primary expectation is for buyers to push up through the weak high to target 4471.75. From there look for responsive sellers and two way trade to ensue. Look for buyers to defend north of the key 4444 level during the balance.
Hypo 2 sellers work down into the overnight inventory but struggle to close the gap down to 4424.75. Instead buyers show up and work up back up above overnight high and target 4467.75 before two way trade ensues.
Hypo 3 full gap fill to 4424.75 then a move to target overnight low 4415. Look for sellers to continue lower to test below Monday’s low 4411. Look for responsive buyers around 4408.
Hypo 4 strong gap-and-go, buyers take out 4470 early and sustain trade above setting up a secondary, initiative leg up to 4488.25.
Levels:
If you enjoy the content at iBankCoin, please follow us on Twitter
Where on earth did you locate that photo of me?