NASDAQ future are coming into Friday flat, the first flat open after 6-consecutive gap up opens. The overnight session was balanced on normal range and volume. Price briefly took out Thursday’s low before settling into range-trade all night. At 8:30am Advance Retail Sales data came out well above expectations.
Also on the economic docket today we have the U. of Michigan preliminary reading of Confidence.
Yesterday we printed a neutral day. Price opened gap up, made a small push lower, then higher, then went into balance, but both sides of the initial balance we broken so the print was neutral. That means we have printed 3-consecutive abnormal profiles; normal, neutral extreme down, neutral.
Heading into today my primary expectation is for buyers to work us higher, up through overnight high 4596 and make a move on the current Globex swing high, up at 4608.25. A test above there triggers some stops thrusting us up to 4621 before two way trade ensues.
Hypo 2 more chop. Perhaps we take out overnight high 4596 and immediately reveal a seller and go into grind mode ahead of the weekend, between 4580 and 4600.
Hypo 3 sellers go to work, take out overnight low 4576.25 then set their sights on the open gap down at 4576.25 before two way trade ensues.
Levels:
Volume profiles, gaps, and measured moves:
