NASDAQ futures are set to gap up after an overnight session featuring extreme range on elevated volume. Price worked below the Monday low print early on but held last Thursday’s range before turning in a strong rotation higher. Since then price has balanced around the midpoint from yesterday’s trade.
On the economic calendar today we have ISM Manufacturing and Construction spending at 10am followed by a 52- and 4-week T-Bill auction at 11:30am.
Yesterday we printed a neutral extreme down day. An early two-way auction gave way to buying which stalled before last week’s high. Sellers then worked price through the entire range and we closed the day near session low. Overall price action is flat as buyers and sellers crowd into these price levels.
Heading into today my primary expectation is for sellers to work into the overnight inventory and close the gap down to 4203.25. From here look for responsive buyers to emerge and work to target overnight high 4242.50 before two way trade ensues.
Hypo 2 buyers take out overnight high 4242.50 early on but stall out ahead of 4250 setting up a move to fill the overnight gap down to 4203.25. Look for sellers to stall out around the 4200 century mark and two way trade ensues.
Hypo 3 buyers take out overnight high 4242.50 early and work up through 4250 setting up a move to target 4270 before two way trade ensues. Stretch target is the “google” gap up at 4289.75.
Hypo 4 sellers are aggressive, close overnight gap down to 4203.25 then take out overnight low 4180.25 to target the MCVPOC at 4171. Sellers continue lower to target 4151 before two way trade ensues.
Levels:
Volume profiles, gaps, and measured moves
quite a spectacular rally.