NASDAQ futures are coming into Thursday flat after a second consecutive normal overnight session. Statistically speaking, both range and volume were normal on a balanced session which managed to hold and slightly build upon yesterday’s range. At 8:30am Initial/Continuing Jobless claims data came out slightly worse than expected.
Yesterday ADP Employment data looked better-than-expected. However both job reports are merely a preview for tomorrow morning’s Non-farm Payroll data, which is the biggest economic event this week.
Also on the economic calendar today we have ISM Non-Manufacturing, Factory Orders, and Durable Goods at 10am.
Yesterday we printed a neutral extreme up day. We came into the day gap down and spent most of the session slowly working lower. During the afternoon session the market printed a failed auction when it 1-ticked the low-of-day then sharply reversed. Price then traversed the daily range and exceeded the morning high by 3-ticks before closing in the upper quadrant, earning the session a neutral extreme classification.
Heading into today my primary expectation is for buyers to work the market higher. Look for a move to close the Tuesday gap up at 4337.50 then up through overnight high 4344.50. Look for responsive seller just above overnight high and for two way trade to ensue.
Hypo 2 strong buyers push up through overnight high 4344.50 then set their sights on yesterday’s globex high 4357.50 before two way trade ensues.
Hypo 3 sellers work down through overnight low 4317.50. Look for responsive buyers down at 4308.75 and two way trade ensues.
Levels:
Volume profiles, gaps, and measured moves:
