NASDAQ futures are set to open significantly higher than yesterday’s close. Just after closing bell yesterday we heard earning reports from Amazon, Google, and Microsoft. All three were better than expectations and futures soared during settlement period. Then we had a surprise 25 bps rate cut by the Chinese Central bank. The overnight range and volume are extreme. Price has managed to press up against the 08/05 session high before settling into balance ahead of the open.
We have two economic events today. The Markit Manufacturing PMI at 9:45am and the Baker Hughes Rig Count at 1pm.
Yesterday we printed a normal variation up day. The profile that formed was skewed to the upside which suggested the market was not done exploring higher prices as the session expired. You might even make the case for yesterday being a double distribution trend day.
Heading into today, the market will attempt to re-balance itself. This means the higher time frame will be active. Look for sellers to push into the overnight inventory and find responsive buying at 4605. This level comes from the template day, 08/05 and was a key resistance on that day. Look for it to transform into support and buyer to push higher to target overnight high 4628 before two way trade ensues.
Hypo 2 gap-and-go up. Take out overnight high early and sustain trade above 4633 setting up a move to target the open gap up at 4668.25 which we left behind on disappointing Apple earnings July 21st.
Hypo 3 heavy selling comes in, pushes down through 4600 and targets 4572 before two way trade ensues.
NOTE: I will not be trading today’s session because I am traveling to New York for the second annual iBankCoin Investor Conference. Last I heard there are one or two tickets left. You should come. Worst case, you can have my chair—I sit all day.
Levels:
Rig count does not matter anymore.
That’s a monster gap up on $NDX. I am wondering if it will fill that last daily upside gap remaining for a double top.