NASDAQ futures are priced for a pro gap up after a globex session featuring extreme range and volume. Price spent most of the session balanced after a strong thrust higher early in the evening. The action managed to take out the low printed yesterday, briefly, before buyers stepped in. Swing low is rarely formed during globex, we have some bearish context left behind. At 8:30am Nonfarm payroll data come out better than expected and 3rd reaction analysis yielded the buy.
Also on the economic calendar today we have Wholesale Inventories at 10am, Baker Hughes rig count at 1pm, and Consumer Credit at 3pm.
Yesterday price opened pro gap down and after buyers pushed a half-gap fill price rolled over. The selling accelerated through the afternoon pushing us into a neutral print. A few attempts at the short squeeze failed and we ultimately closed near session low earning the day a neutral extreme designation.
Heading into today my primary expectation is for sellers to work into the overnight inventory and trade down to 4328.50. Look for responsive buyers here then a push to take out overnight high 4370. Look for buyers to keep pushing and test above Thursday high 4395.75. Expect responsive sellers just above Thursday high, around 4398.75, and two way trade ensues.
Hypo 2 sellers push down through 4328.50 setting up a move to target the 4300 century mark. Buyers show up here but are ultimately overrun and we do a full gap fill down to 4287.50. This sets up a move to take out overnight low 4281. Look for responsive buyers at 4274.25 and two way trade ensues.
Hypo 3 sellers accelerate after filling overnight gap, trade down through 4274.25 to set up a move to fill the open gap down at 4261.75.
Levels:
Futures already giving back big amount of knee jerk ramp higher, as expected. Smart money will short the opening. A gift.
+1
A most excellent call this morning.
Hypo tres it is. Who wudda thunk it? I mean, It’s not like there were red flags waving all over the place this morning pre-open…LOLZ