NASDAQ futures are coming into Wednesday gap up after an overnight session featuring normal range and volume. Price was balanced and held yesterday’s range on a Globex session that printed a weak low verse 4782. At 7am MBA Mortgage Applications came in better than last week.
Also on the economic docket today we have crude oil inventory at 10:30am, a 10-year Note auction at 1pm, and a Monthly Budget Statement at 2pm.
Yesterday we printed a normal variation up. Price opened gap up and drove to new highs. Right at the measured move levels responsive sellers showed up and we settled into two-way trade, but sellers never closed the overnight gap.
Heading into today my primary expectation is for sellers to work into the overnight inventory and close the gap down to 4791.75. Then we take out overnight low 4782 and target the open gap at 4779.50. Look for responsive buyers down at the naked VPOC 4773.75 and two way trade to ensue.
Hypo 2 buyers step in ahead of the gap fill, ahead of 4791.75 and work higher to take out overnight high 4800.25 the continue higher to probe above yesterday’s high 4807.75. Look for price to continue higher, up to 4822 before two way trade ensues.
Hypo 3 liquidation takes hold, price pushes down through 4779.50 then sustains trade below 4773.75 setting up a test of the week’s low 4759.75. Look for responsive buyers down at 4756.75 and two way trade to ensue.
Levels:
Volume profiles, gaps, and measured moves:
