NASDAQ futures are set to open gap up after an overnight session featuring normal range and volume. Price worked higher for most of the session, finding sellers just ahead of the key MCVPOC at 4546.50. That was around 6am, and since then the futures have been pushing lower.
On the economic calendar today we have a 4-week T-bill auction at 11:30am, a 3-year note auction at 1pm, and Consumer Credit at 3pm.
Yesterday we printed a neutral day. After coming into the week gap up, sellers were unable to fill the gap. Instead initiative buyers came in and worked price higher during the morning, pushing the market range extension (RE) up before lunchtime and Fed Chair Yellen’s talk in Philadelphia. During her speaking the market traversed its entire range and went RE down briefly. A sharp responsive bid stepped in and we formed an excess low. The market then traversed the entire range again to make a new high on the day before ultimately settling near the daily mid.
Quite the OTF battle.
Heading into today my primary expectation is for sellers to work into the overnight inventory and close the gap down to 4525. Look for buyers here who test up to 4540. Sellers are here, ahead of overnight high and begin working price lower, down through overnight low 4520.50. Look for a move down to 4513.25 before two way trade ensues.
Hypo 2 sellers close overnight gap down to 4525 then take out overnight low 4520.50. From here a move down to 4513.25. Look for responsive buyers up at 4506.25 before two way trade ensues.
Hypo 3 buyers push up off the open, take out overnight high 4545.50 setting up a move through MCVPOC 4546.50. Look for sellers to try and defend up at 4549.75. Stretch target is 4555.25.
Levels:
Volume profiles, gaps, and measured moves:
