NASDAQ futures are flat heading into Thursday after a balanced overnight session featuring elevated range and volume. Price pushed up near the weekly high before trading lower and forming two-way trade that held the upper quadrant of yesterday’s range. at 8:30am Durable Goods Orders came in well above expectations while Initial/Continuing jobless claims data was in-line with expectations.
Also on the economic docket today we have House Price Index at 9am and a 7-year note auction at 1pm.
Yesterday we printed a neutral extreme trend day. Sellers worked into trade early on after a large gap down and managed to push the market range extension down [briefly] before discovering a strong responsive bid. Buyers turned initiative on the session and price managed to trend higher for the rest of the session.
Heading into today my primary expectation is for buyers to work up through overnight high 4229.25 and target 4238.50 before sellers step in and two way trade ensues.
Hypo 2 buyers take out overnight high 4229.25 and sustain trade above 4238.50 setting up a secondary leg to target 4256.
Hypo 3 sellers push off the open and work lower to take out overnight low 4186.50 and work lower to target 4166.50 before two way trade ensues.
Hypo 4 sellers move below 4166.50 and sustain trade below it setting up a liquidation move down to 4140 before two way trade ensues.
Levels:
Volume profiles, gaps, and measured moves:
Thx 4 the warning. I took my shorts off from premarket levels and am completely sidelined 4 now.