NASDAQ futures are heading into Friday gap down after an overnight session featuring normal range and volume. Price action was balanced but is now pushing lower as we head into cash open, taking back most of the spike seen after Amazon reported strong earnings yesterday AMC. At 8:30am Personal Spending data came out below expectations.
Also on the economic docket today we have U of Michigan confidence at 10am and Baker Hughes rig count at 1pm.
Yesterday we printed a neutral extreme down. The session started off trending higher before sellers rejected a move back up into Tuesday’s range. Sellers then traversed the entire daily range and accelerated down through Wednesday’s range. During settlement Amazon reported strong earnings and price spiked up, nearly touching the day’s midpoint.
Heading into today my primary expectation is for sellers to push lower and test below yesterday’s low 4346.25. Look for responsive buyers down at 4343 then two way trade to ensue.
Hypo 2 buyers work into the overnight inventory (the pajama traders) and work price higher to close the overnight gap up to 4383.75. Buyers then take out overnight high 4391.25. Look for responsive sellers up at 4398.25 and two way trade ensues.
Hypo 3 selling drive early on takes out 4343 and sustains trade below it, setting up a move to target 4321.75 before two way trade ensues. Stretch targets to the downside are 4300 then 4293.
Levels:
Volume profiles, gaps, and measured moves:
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