Equity futures traded higher on the globex session with a bulk of the overnight rally fueled by the Apple earnings announcement. Price managed to make a new 3-day high on the news before settling into balance. At 7am MBA Mortgage Applications came out lower than expected which introduced some selling to the tape. At 8:30am Advance Goods Trade Balance data was better than expectations. No reaction so far to it. Heading into cash open, price is sitting just above the session high from yesterday.
At 10:30am we have crude/distillate inventories, but the high impact event is scheduled for 2pm when the Federal Open Market Committee with make their rate decision.
Yesterday we printed a normal variation up day, the second this week, with price slowly drifting higher. The last three sessions overlapped enough to merit drawing a microcomposite (shown below on volume profile chart).
Heading into today, my primary expectation is for sellers to push into the overnight inventory and close the open gap down to 4632.50. From there look for sellers to continue pressuring the tape down to the micro composite volume point of control (MCVPOC) at 4621 before two way trade ensues. From here look for buyers to work higher to target overnight high 4651.75 and the gap Apple left behind last quarter up at 4668.25.
Hypo 2 buyers hold above yesterday’s range and go take out overnight high 4651.75 then close the Apple gap up at 4668.25. Look for responsive sellers up at 4675.25 and two way trade ahead of the FOMC minutes.
Hypo 3 sellers accelerate down though 4620 to take out overnight low 4613.75. Look for responsive buyers at 4604.
Levels:
