NASDAQ futures are up a touch heading into Thursday trade. The overnight session featured a normal range and volume on price action that was contained inside the prior day range. Price was churning around the Wednesday MID before pressing higher around the time European markets opened. At 8:30am Initial/Continuing jobless claims came in worse than expected, a high read, and the initial reaction is mute.
The economic calendar is otherwise quiet. Energy traders are likely paying close attention to the 10:30am Natural Gas storage read since unseasonably warm weather has gripped the Midwest.
Yesterday we printed a normal variation down. Price opened gap up and quickly went down to close the opening. Initially buyers were responsive at this level but were overrun later in the morning as sellers pressed down into the volume pocket. Just on the other side, and right at our prior value, responsive buyers again emerged and price closed out near the mid.
Heading into today my primary expectation (blue) is for sellers to push down into the overnight inventory and close the gap down to 4710. From there look for price to continue a bit lower but find responsive buyers ahead of overnight low 4700.25. Then two way trade ensues with buyers working at taking out overnight high 4727.50. Stretch targets are 4732 and 4734.50.
Hypo 2 (orange) sellers push down through overnight low 4700.25 and explore the lower region of our current value. Look for responsive buyers to defend north of 4695 and two way trade to ensue around the 4710 mark.
Hypo 3 (green) buyers push off the open, take out overnight high 4727.50 early on and go test up to 4732 before finding sellers and two way trade ensues around 4720.
Hypo 4 we break balance up. Buyers are strong, sustain trade above 4734.50 setting up another leg higher and continued exploration of higher prices.
Hypo 5 break balance down, sellers break back into the lower value area and go test VAL at 4684.75.
Levels:
What is your target for Nasdaq year end? What about 1st quarter 2016?
This morning NQ_F traded around the low of your profile from 11/02 16:00 – was this something you were looking at?