NASDAQ futures are priced to open gap down today after an overnight session featuring normal range and volume. Action was balanced until early this morning when sellers pushed in. Price managed to trade down near Wednesday’s open print before finding responsive buyers and going into two-way trade. At 8:30am Consumer Price Index came out better-than-expectations. The initial reaction is buying.
Also on the economic calendar today we have the Baker Hughes Rig Count at 1pm.
Yesterday we printed a normal variation down day. Price slowly worked lower, down into the initiative buying seen Wednesday. Several responsive bids stepped in throughout the orderly rotation lower but ultimately we traded down. Given the day-4 unidirectional stat, the move made sense statistically.
Heading into today my primary expectation is for buyers to push into the overnight inventory and close the gap up to 4153.50. From here look for buyers to make a move to take overnight high 4169.75. Look for responsive sellers up at 4177 and two way trade ensues.
Hypo 2 sellers work lower off the open and take out overnight low 4129.75 and test below Wednesday’s low 4123. Look for buyers to defend around 4119.25 and two way trade to ensue.
Hypo 3 strong sellers push down through 4119.25 and move to target 4109.50. Responsive buyers at this level are overrun and sellers continue lower to target the open gap down at 4092.50.
Hypo 4 strong buyers take out overnight high 4169.75 early on and sustain trade above 4177 setting up a move to target 4200.
Levels:
Volume profile, gaps, and measured moves:
Great levels, thanks
hummm…. hypo 2 or 3…
either way lower in the short term 2day?
watching
hypo 2 morphs into hypo 1 and premium buyers get cooked…classic OPEX IMO
I saw the grim reaper appear at my doorstep and went cash for the day after booking a small profit. I was done by 11am after my comment.
I wasn’t interested in getting screwed in the opex pin game. I’m too novice for that.