NASDAQ futures are coming into Thursday flat-to-slight gap down after an overnight session featuring normal range and volume. Price managed to extend swing high overnight up beyond the high-mark printed back on 12-2-15 before sellers showed up. Since then price is consolidating above yesterday’s midpoint. At 8:30am Advance Goods Trades balance data came out worst then expected. Same goes for Initial/Continuing Jobless claims. The read was worse than expected.
Also on the economic docket today we have 2- and 7-year Treasury note auctions at 1pm.
Both Amazon and Alphabet are scheduled to report earnings after market close.
Yesterday we printed a neutral extreme up. After opening gap up and some two-way trade, price worked lower. Buyers rejected an attempt back down into Tuesday’s range ahead of the FOMC rate decision. The Fed left their key borrowing rate unchanged and third reaction analysis yielded the buy. Price worked up to a new daily high, putting us into a neutral print, before price worked back down to the daily mid, but Facebook earnings came out during settlement and spiked us to the high by market close, thus making it a neutral extreme.
See also: Zuckerworld – $FB Smashes Earnings Expectations, Shares Soar in The After Hours
Heading into today my primary expectation is for buyers to work into the overnight inventory and close the gap up to 4707.75. Buyers continue higher, up through overnight high 4721.50 and into open air before two way trade ensues.
Hypo 2 seller defend right around the gap fill level, around 4707.75 and sellers work down through overnight low 4699.25. Buyers show up around 4689 before two way trade ensues.
Hypo 3 sellers gap-and-go lower work down through overnight low 4699.25 and sustain trade below 4687.25 triggering a hard liquidation down to the open gap at 4663.75.
Levels:
Volume profiles, gaps, and measured moves:
anyone have the leaked plans of the BoJ? this range is boring me