The NASDAQ futures are lower as we head into cash open after a globex session that featured an elevated range on normal volume. Price spent most of the session working lower before coming into balance on the topside of our 3-day micro-composite, which is about the same level as the midpoint of the range yesterday. At 8:30am several data were released including Initial/Continuing Jobless Claims, Annualized GDP, and Personal Consumption. The initial reaction is flat.
Coming up today, we also have Pending Home Sales at 10am and Natural Gas Storage stats at 10:30am.
Yesterday we printed a neutral extreme up day. Price opened gap up and worked lower to kiss the micro-composite volume point of control (MCVPOC) around 4620 before finding responsive buyers (responsive relative to the open, initiative relative to the micro-composite). From there we worked higher into the FOMC Rate Decision.
The FOMC rate decision introduced a hard sell into the market which traded right down into the value area low of the well-established market profile structure we were monitoring before again finding responsive buyers. Third reaction yielded the buy and we rallied higher to close the Apple earnings gap from last quarter (7/21/15, 4668.25) and tag the upper ATR bracket at 4675.25.
Heading into today, my primary expectation is for sellers to make an early push down through overnight low 4642.75 to target 4637.50. From there look for responsive buyers who work up to 4661 before two way trade ensues.
Hypo 2 buyers push into the overnight inventory and close the gap up to 4673.25. Look for the buying campaign to continue, testing above yesterday high 4678.25 and stalling out and finding selling up near 4680.
Hypo 3 sellers advance down through 4637.50 to target 4628.75 before two way trade ensues.
Hypo 4 liquidation takes hold, sellers press down through 4624 and sustain trade below. This sets up a secondary leg to test yesterday session low 4600.50 effectively unwinding the post FOMC rally. This move could continue down to 4580 if speed accelerates.
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