NASDAQ futures are coming into Wednesday gap up after an overnight session featuring normal range and volume. Price was balanced for most of the evening, then began steadily working higher early this morning. Sellers were found just ahead of Monday’s midpoint and two-way trade ensued. At 7am MBA mortgage were well below last week’s reading, -2.4% vs 9.3% the prior week.
There are several economic data points due out today, them most important being the 2pm FOMC rate decision. At 9:15am Industrial/Manufacturing Inventory numbers will drop, at 10:30am crude oil inventories, and at 4pm Long-term TIC Flows.
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Yesterday we printed a normal variation down. The market opened gap down and was met with strong responsive buying which took price up to Monday’s value before a strong seller came in and pushed us range extension down. Bidders stepped in before lunch and two way trade ensued.
Heading into today my primary expectation is for sellers to work into the overnight inventory and close the gap down to 4418.25. From here look for price to continue working lower and take out overnight low 4406.25. Look for responsive buyers down at 4400 and two way trade to ensues ahead of the FOMC minutes.
Hypo 2 buyers step in ahead of 4420.75 and price takes out overnight high 4435.75. Look for responsive sellers up at 4442.50 and two way trade to ensue ahead of the FOMC minutes.
Hypo 3 gap-and-go higher, push up through 4435.75 adn target 4449.50 then the open gap up at 4458.50 ahead of the FOMC minutes.
Look for the 30 minutes after the Fed to provide market direction into the close of the week.
Levels:
Volume profiles, gaps, and measured moves:
Nice read on nq action overnight.