NASDAQ futures are coming into Wednesday gap up after an overnight session featuring normal range and volume. Price worked down to a new low on the week before finding a responsive bid back up to yesterday’s midpoint.
On the economic calendar today we have crude oil inventories at 10:30am followed by FOMC Meeting Minutes from the July 26-27 meeting.
Yesterday we printed the statistically rare normal day. Sellers drove lower early yesterday morning after price opened gap down. The initial balance was not breached for the rest of the day. Near the end of the session a double low was formed at 4796.50.
Heading into today my primary expectation is for sellers to work into the overnight inventory and close the gap down to 4799.75. They continue working lower, down through overnight low 4789.50 setting up a move to close the open gap down at 4781.25 before two way trade ensues.
Hypo 2 buyers show up around 4800 and work price up through overnight high 4809.75 and the market stalls out, goes range bound between 4810 and 4800.
Hypo 3 buyers push up through 4809.75 then sustain trade above it setting up a move to target Monday’s open gap up at 4822.75 before two way trade ensues.
Levels:
Volume profiles, gaps, and measured moves:
