NASDAQ futures came into the morning gap up after an overnight session featuring normal range and volume. Price was balanced overnight for the most part until a strong trust higher around 7am when earnings started rolling in. Strong earnings from CELG may have accelerated the morning rally.
At 8:30am Durable Good Orders came in below expectations, also Initial/Continuing jobless claims data came out mixed.
At 10am Pending Home Sales data was better than expected:
USA Pending Home Sales (MoM) for Sep 1.50% vs 1.20% Est; Prior -2.40%
Also on the docket today we have a 7-year Note auction at 1pm.
Yesterday we printed a neutral day. After opening gap down price worked up to Tuesday’s low where sellers rejected a move back into it. We then reversed the entire morning move before settling back into the middle of the days range.
This morning we opened gap up, near Wednesday’s high and saw a drive lower to close the overnight gap.
Heading into the meat of the trading day, my primary expectation is for sellers to work toward overnight low 4842.50 to target the MCVPOC at 4831.
Hypo 2 buyers defend around 4845 and two way trade ensues between 4866.75 and 4845.
Hypo 3 strong sellers work down to 4825.25 before two way trade ensues.
Levels:
Volume profiles, gaps, and measured moves:
