NASDAQ futures are heading lower as we approach cash open. The overnight session features elevated range and volume. Action was balanced with an upward skew until a robust Nonfarm payroll report was released at 8:30am. Price was contained mostly to the lower half of Thursday range before briefly exceeding the session low.
Also on the docket today we have the Baker Hughes rig count at 1pm and Consumer Credit at 3pm.
Yesterday we printed a normal variation down. We opened gap up, went down and closed the gap and found buyers who were then overrun by a big wave of selling. The action pushed range extension down briefly before rallying back to the midpoint. From there sellers were seen defending before we ultimately came into balance.
Heading into today my primary expectation is for sellers to push down though overnight low 4672.50 to set up liquidation down to 4656.50. From there look for two way trade to ensues.
Hypo 2 buyers pus into the overnight inventory and close the gap up to 4696.50 before sellers come in and work down through overnight low 4672.50. Buyers are found not far below and two way trade ensues.
Hypo 3 buyers are strong, press the gap closed then set targets on overnight high 4708.75 before balancing into Friday grind-balance trade.
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