NASDAQ futures are coming into Wednesday gap up after an overnight session featuring elevated range on normal volume. Price worked up for most of the session and stalled out just below last Friday’s midpoint. At 7am MBA Mortgage applications printed a slight negative read and at 8:30am Personal Consumption Expenditure came out in-line with expectations.
Also on the economic docket today we have Pending Home Sales at 10am and Crude Oil inventories at 10:30am.
Yesterday we printed a double distribution trend up. There was a strong open drive higher atop the pro-gap up. Most of the day was spent consolidating the move along the daily mid before a second continuation wave pushed in, closing the market near session high and reclaiming last Friday’s range.
Heading into today my primary expectation is for buyers to squeeze higher off the open up to 4328.25 before finding responsive sellers and settling into two way trade.
Hypo 2 sellers work into overnight inventory and close the gap down to 4281.25. Look for a continued move lower to take out overnight low 4268.25 then responsive buyers just below here and two way trade to ensue.
Hypo 3 buyers push a bit higher, up to 4341.25 before settling into two way trade.
Hypo 4 volatility compresses and we chop range, from about 4290 – 4320.
Levels:
Volume profiles, gaps, and measured moves:
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Raul I enjoy reading your work.
Are you active inside Exodus also?
Inside Exodus I write the Strategy Session every Sunday and also post my 2-10 day trades in the community notes. My fututres trading is too high frequency to post.