NASDASQ futures are coming into Friday gap down after an overnight session featuring normal range and volume. Price worked higher, initially overnight before finding sellers ahead of Wednesday’s high—the same region sellers defended during the initial spike higher post-FOMC rate decision. Since then we have pushed lower, back down into the upper-quadrant of yesterday’s range.
On the economic docket today we have Housing Starts and Building Permits at 8:30am and Baker Hughes Rig count at 1pm.
Yesterday we printed a neutral extreme up. The market opened gap down and sellers drove price lower off the open. Then, just 1-tick below the 05/23 gap fill a strong responsive bid stepped in. Just before NYC lunch a massive buy program hit at the NYSE.
THERE IT IS: HUGE NYSE TICK…
Biggest since 5/12 at 2:18pm
We have a big responsive bidder?
— Raul (@IndexModel) June 16, 2016
That pushed the NASDAQ up through the daily mid. Price then retraced lower one last time before a huge secondary thrust pushed us neutral. Buyers tacked on an additional ramp higher late in the session.
Heading into today my primary expectation is for buyers to work into the overnight inventory and close the gap up to 4417. From here they continue working higher to 4422.25 before sellers step in and push down through overnight low 4409.50. Buyers are just below here and two way trade ensues. In other words, marking time/chop.
Hypo 2 buyers close overnight gap up to 4417 then set their sights on overnight high 4432.50. The continue higher to target 4442.50 before two way trade ensues.
Hypo 3 sellers push down through 4409.50 off the open and go test the 4400 century mark. Buyers defend and two way trade ensues, perhaps working up to close overnight gap 4417.
Hypo 4 strong selling pushes down through 4400 and sustains trade below it setting up a move to 4389.50 before two way trade ensues.
Levels:
Volume profiles, gaps, and measured moves:
