NASDAQ futures are down to a new swing low overnight after a globex session featuring extreme range and volume. The session kicked off with a trend down which located a responsive bid just above the weekly ATR band (low). This level also lines up with a gap left behind on 08/25/2015. After finding the responsive bid the market came into balance. At 7am MBA Mortgage Applications came in below expectations and at 8:30am Consume Price Index came in below expectations. The initial reaction is small buying.
Also on the economic calendar today we have a 4-week T-bill auction at 11:30am.
Yesterday we printed a normal variation down day. After price opened gap up we spent the morning filling the gap. Responsive buyers at these levels were overrun and price pushed deep into last Friday’s range before finding a responsive buyer and closing at session mid.
Heading into today my primary expectation is for buyers to push into the overnight inventory and work price up to 4107.75. Look for responsive sellers here to defend yesterday’s range and push price back down to 4050 before two way trade ensues.
Hypo 2 buyers struggle to push above 4081 setting up a move lower. Price sustains below 4050 setting up a move to target overnight low 4035.25. Look for responsive buyers at 4032.25 and two way trade ensues.
Hypo 3 buyers muster up a full gap fill up to 4145.75. First they capture and sustain trade above 4107.75.
Hypo 4 full-on-liquidation. Take out overnight low 4035.25 early and sustain trade below it. Stretch targets are 3997.50 then off the road, down to 3867.50.
Levels:
What r your thoughts on 2days action?
I liked it, market still very methodical, auctions very logical and clean rotations
Ever thought of opening up an index trading room? Like the option addict?
Not really. I only trade futures about 1.5-2 hours/day