NASDAQ futures are coming into Thursday gap up after an overnight session featuring normal range on elevated volume. Price tested both sides of our current value, initially working lower last night before reversing all the losses and more early morning. Since then we have settled near the middle balance. At 8:30am Advance Retail Sales data was below expectation, Initial/Continuing Jobless claims were better than expected, and the Philadelphia Fed Manufacturing activity posted a huge beat.
Also on the economic calendar today we have Existing Home Sales at 9am, Industrial Production at 9:15am, and Business Inventories at 10am.
None of these economic events are likely to have a substantial impact on the tape, but it makes sense to have them on your radar.
Yesterday we printed a normal variation up. Price opened flat and buyers quickly pushed higher, closing the Monday gap before finding a responsive seller. We spent the rest of the session working lower but never pressing below the morning low.
Heading into today my primary expectation is for sellers to work into the overnight inventory and close the gap down to 4728.50. Look for buyers here who work higher and take out overnight high 4754.85 before two way trade ensues.
Hypo 2 sellers close overnight gap 4728.50 then continue lower to take out overnight low 4716.25. Look for buyers down at 4708.50 and two way trade to ensue.
Hypo 3 buyers gap and go, take out overnight high 4754.75 early then test above Monday/Wednesday highs 4767.75 – 4768.75. This sets up a move to target the gap at 4792.25 before two way trade ensues.
Levels:
Volume profiles, gaps, and measured moves:
