NASDAQ futures are priced for a gap up after an overnight session featuring extreme range and volume. Price managed to mark overnight low early in the session after Amazon earnings spiked the market. From there price went on to take out the high print from yesterday before settling into balance. At 8:30am GDP data came out slightly weaker than expectations [0.70% vs 0.80% est] but end consumption beat nicely [2.2% vs 1.8% est].
Also on the economic calendar today, we have Chicago Purchasing Manager at 9:45am, U. of Michigan’s Final January read of Confidence at 10am, and the Baker Hughes rig count at 1pm.
Yesterday we printed a normal variation down. The market opened gap up and sellers worked into the tape early. Price managed to go range extension down briefly after 10:30am and found a sharp responsive buyer ahead of Wednesday’s low. From there the market formed an excess low and initiative buyers [initiative relative to the excess low, responsive relative to the open] struggled and were unable to take out session high. Price ultimately settled at the mid after Amazon earnings spiked price lower during settlement period.
Heading into today my primary expectation is for sellers to work into the overnight inventory and close the gap down to 4154.50. Look for responsive buyers ahead of 4135 and two way trade to ensue.
Hypo 2 sellers close overnight gap down to 4135 then take out overnight low 4128.50. Look for a move down to 4110 before responsive buyers step in.
Hypo 3 buyers work in early and push price up through overnight hgih 4198.50 to test the 4200 century mark. Look for responsive sellers at the NVPOC at 4202.
Hypo 4 buyers sustain trade up around the 42020 NVPOC setting up a move to target the open gap up at 4226.75.
Levels:
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Looks like it is degenerate gamblers for the win
I may fall asleep before Baker Hughes – This tape is pretty bring