NASDAQ futures are trading lower as we head into cash open this second Wednesday of December. Today is the last day most active traders will be swinging the old NQZ5 around. Tomorrow we switch to a March mentality via the NQH6. The Globex session featured an elevated range on normal volume. Around 3am, just as we approached the Tuesday high a strong sale came in and pushed price back down through the late-morning buy surge seen yesterday.
The economic calendar is quiet today, but energy traders will be keeping a close eye on the weekly Department of Energy report on oil as the commodity undergoes serious selling pressure.
Yesterday we printed a normal variation up. Price opened pro gap down and after some back-and-forth a strong buy thrust came through and closed the gap. The market went two-way for a bit before an afternoon rally set up. It was faded into the bell.
Heading into today my primary expectation is for sellers to make an early move on overnight low 4666.25. This sets up a liquidation trade down to 4642 before I expect to see responsive buyers and two way trade ensue.
Hypo 2 buyers push into the overnight inventory and work a gap fill up to 4687.25. Buyers stall out before 4700 and two way trade ensues.
Hypo 3 buyers firm up after closing the overnight gap up to 4687.25 and set their sights on overnight high 4707.50. This sets up a leg up to 4718.50 before two way trade ensues.
Hypo 4 the big liquidation. Below 4642.25 is more single prints–all the way down to 4600.
Levels:
