NASDAQ futures are coming into Thursday gap up after an overnight session featuring normal range and volume. Price worked higher overnight, taking out yesterday’s high twice–the first time triggering a responsive sale back down to the key 4782 level. Heading into the open we are pinned at yesterday’s high. At 8:30am Initial/Continuing Jobless claims came in below expectations.
Also on the economic docket today we have a 30-year Bond auction at 1pm.
Yesterday we formed a normal variation down. Price worked lower early in the session to take out the weak overnight low. Buyers stepped in ahead of the low print from Monday at 4766.25 and two way trade ensued.
Heading into today my primary expectation is for sellers to work into the overnight inventory but struggle to close the gap down to 4781.25. Instead buyers show up at 4784 then go take out overnight high 4797.25. Price continues probing higher, up through all-time high 4807.75 before two-way trade ensues.
Hypo 2 sellers do a full gap fill down to 4781.25 take out overnight low 4775.75 then probe below the weekly low 4766.25. Look for responsive buyers down at 4757 and two way trade to ensue.
Hypo 3 strong buyers push up through all time high and target 4822 before two way trade ensues.
Levels:
Volume profiles, gaps, and measured moves:
