NASDAQ futures are coming into Wednesday gap up after an overnight session featuring normal range and volume. Price worked higher overnight, up to new swing highs before coming into balance. At 7am the MBA Mortgage Applications reading was better than last weeks.
Also on the economic docket today is Fed Beige Book at 2pm. However, we also have an Apple event at 1pm. With the right announcement (new smart phone) these events can send ripples through the market as much as a Fed rate decision.
Yesterday we negated the failed auction. Around 10:15am bears took one last stab at defending the key retrace level around 4817 but were ultimately overrun. Once overrun, the bulls converted their resistance into support and became initiative, ending the day near the high.
Heading into today my primary expectation is for sellers to work into the overnight inventory and close the gap down to 4827.75. Look for buyers there who continue working higher, up through overnight high 4837.75 to target the measured move of 4851.75.
Hypo 2 sellers work down through overnight low 4826.25 setting up a move down to 4818.25 before two way trade ensues.
Hypo 3 strong selling pushes down through 4818.25 setting up a move to target 4800 before two way trade ensues.
Hypo 4 mark time at highs. Hold prices up around 4830 in choppy, two way trade.
Levels:
Volume profiles, gaps, and measured moves:
Indexes have been dead for so long. Cant think i remember a time where it’s been this boring