NASDAQ futures are priced to gap up after an overnight session featuring elevated volume and extreme range. Price managed to work down to the close from last Thursday before responsive buyers stepped in. Buyers then pushed up through the entire range and as we approach cash open, the market is near Globex high. At 9am a slew of housing data was released. The initial reaction is flat.
On the economic calendar today we have Markit Service/Composite PMI at At 9:45am. The biggest data on the session comes at 10am when we hear the latest Consumer Confidence read.
Yesterday we printed a neutral extreme down. Price opened gap down and formed a tight range through most of the morning. During the morning chop sellers managed to push the market range extension down. Buyers quickly reversed the RE down and pushed to a new weekly high. Price stalled out just below overnight high [after closing the 01/14 gap at 4258.75] and traversed the whole range a third time. Sellers then accelerated down into last Thursday/Friday’s gap and we closed out near session low.
Heading into today my primary expectation is for buyers to squeeze off the open. Look for a move up to 4227.50. From here responsive sellers step in and work a gap fill down to 4186.50 before two way trade ensues.
Hypo 2 sellers work the gap fill down to 4186.50. Responsive buyers step in around 4169.25 and a tight range, two way trade ensues.
Hypo 3 sellers close overnight gap down to 4186.50 early and accelerate down through 4169.25 to set up a move to take out overnight low 4133 and close the Thursday gap down at 4130.25. Look for responsive buyers just below at 4128.50.
Hypo 4 strong buying pushes the pole climb up to 4227.50 early and trade is sustained up at these levels. This sets up a secondary move to target 4247.75. Stretch target is a test above the Monday high 4259.75.
Levels:
