NASDAQ futures are coming into Thursday gap down after an overnight session featuring abnormal range and volume. Price worked lower, slashing through local support levels before coming into balance below the midpoint of 9/15, a conviction trend up day in September. At 8:30am Initial/Continuing jobless claims data was better than expected.
Also on the economic docket today we have Crude Oil inventories at 11am and a 30-year Bond auction at 1pm.
Yesterday the NASDAQ printed a normal variation up. Sellers held price in the lower quadrant of Tuesday’s trend down during the tight Wednesday session.
Heading into today my primary exepctation is for buyers to work into the overnight inventory and test above the wall of resistance at 4788. Look for a push up to 4800 to find sellers who work us down through overnight low 4774 setting up a move to target 4751.75 before two way trade ensues.
Hypo 2 sellers gap-and-go lower, take out overnight low 4774 and target 4751.75 before two way trade ensues.
Hypo 3 buyers stronger, work up to 4807.25 and encouter some sellers who are ultimately overrun as we continue higher and fill the overnight gap up to 4813.75.
Hypo 4 full-on liquidation, downside targets are the MCVPOC at 4732.50 then the open gap at 4728.50.
Levels:
Volume profiles, gaps, and measured moves:
