NASDAQ futures are priced to enter Thursday gap down after an overnight session featuring normal range and volume. Price held balance in yesterday’s upper quadrant for most of the evening before succumbing to selling early this morning. The selling was truncated well above yesterday’s midpoint before two way trade resumed. The ECB talked dovish very early this morning, and t 8:30am Initial/Continuing jobless claims data came out in-line with expectations.
Also on the economic docket today we have consumer credit at 3pm and at 5:30pm Fed’s Yellen is having a talk with former Fed Chairs Volcker, Greenspan, and Bernanke.
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Yesterday the NASDAQ printed a trend up. The day started flat, and an early attempt by responsive sellers to defend against a test above Tuesday’s high was overrun by strong initiative buying. The accumulation continued throughout the entire session, trading up through the open gaps left behind Tuesday (4/4 close, 4499.25) and Monday morning (4/1 close, 4529). Price trended right up through the close.
Heading into today my primary expectation is for buyers to push into the overnight inventory and close the gap up to 4535. From there look for a continued move up through overnight high 4539.50. Look for responsive sellers up at 4546.25 before two way trade ensues.
Hypo 2 sellers defend ahead of 4522 setting up a move to take out overnight low 4508.50. Look for responsive buyers down at 4487.50 and two way trade ensues.
Hypo 3 strong selling off the open pushes down through 4487.50 to target 4472. Look for responsive buyers down at 4468 before two way trade ensues.
UPDATED Levels, volume profiles, gaps, and measured move:
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