Prices over at the NASDADQ exchange are down near the Monday low after an overnight session that featured an elevated range on normal volume. The price action was nearly contained within the lower half of the range established Monday.
The economic calendar is slow today. We have Wholesale Inventories at 10am.
Yesterday we printed what can be best described as a double distribution trend day down. The week started with a gap down. A tight compression formed off the open which broke to the downside and triggered a fast, liquidation move lower. By lunchtime responsive buyers stepped in, and after about 3 hours of balance near the lows we saw a late-day rally.
Heading into today my primary expectation is for buyers to work into the overnight inventory and push price up. Look for buyers to stall out before the open gap up at 4652.25. Look for responsive sellers (responsive relative to the open, initiative relative to yesterday close) around 4645.50 who target the overnight low 4624.50. Below here price action is thin. Look for buyers around the 4600 mark then two way trade ensues.
Hypo 2 buyers push into the overnight inventory and close the gap up to 4652.25 before sellers step in and work price down through overnight low 4624.50. A test below ONL/Monday low 4622 reveals responsive buyers and two way trade ensues south of 4655.
Hypo 3 strong buying closes overnight gap 4652.25 then sets its sights on overnight high 4662.25. Trade is sustained above ONH 4652.25 setting up a pole climb up to 4692 before two-way trade ensues.
Levels:
Only speed zone for the chap in the cover photo is DOWN. I’m imagining he also has an ex girlfriend burning a death candle against him. Not a good omen for today…
looking like a reverse variation of hypo 2, LOD could be in