NASDAQ futures are coming into Thursday gap up after a Globex session featuring extreme, 3rd sigma, range and volume. The session was balanced overall but did manage to exceed yesterday’s low before settling into two way trade. As is always the case, a swing low made outside of regular trading hours is considered suspect. At 8:30am Initial/Continuing Jobless Claims data came out worse than expected. The initial reaction is a small amount of buying.
Also on the economic calendar we have a 30-Year bond auction resuming at 1pm.
Yesterday we printed a trend day down. Price opened gap up and sellers made short work of filling the overnight gap which opened the door up for a test below overnight low. Initial responsive buyers in this area were overrun and we spent the rest of the day trending lower and making a new swing low.
Heading into today my primary expectation is for sellers to work into the overnight inventory and close the gap down to 4175.50. From here I will look for a test down to overnight low 4152. Look for responsive buyers just below this level and two way trade ensues.
Hypo 2 buyers make a gap and go higher. They take out overnight high 4214.75 early on and find responsive seller ahead of 4224 settling up into two way trade.
Hypo 3 buyers push up through 4224 and sustain trade above it setting up a pole climb up to 4262 before two way trade ensues.
Hypo 4 sellers work gap fill down to 4175.50, take out overnight low 4152 and liquidation takes hold. Stretch targets to the downside are 4119.50 then 4074.75.
Levels:
Fine, I’ll say it: Fuck Nick Woodman and the face he rode in on. NO GOOD.