NASDAQ futures are coming into Thursday gap up after an overnight session featuring extreme range and volume. Price worked higher overnight, campaigning higher prices until finding sellers up near the 10/27 daily high, an area previously defended by sellers. At 8:30 am Initial/continuing jobless claims data came out mixed.
Also on the economic calendar today we have a 30-year bond auction at 1pm and a Monthly Budget Statement at 2pm.
Yesterday we printed a double distribution trend up. Price opened pro-gap down but much higher the futures were initially pricing overnight, post Donald Trump victory. Then, a strong drive higher took hold at the open. After initially being faded by sellers, a second, intiative wave of buying pushed the market to a fresh high on the week before two way trade ensued.
Heading into today my primary expectation is for sellers to work into the overnight inventory and trade down to 4829.50. From here buyers show up and two way trade ensues, below 4868.
Hypo 2 sellers work down through 4830 to target a gap fill down to 4820.50 then continue lower to take out overnight low 4809.25. Look for responsive buyers down at 4786.50 and two way trade to ensue.
Hypo 3 buyers gap and go, up through overnight high 4879.75 to close the gap up at 4888. Stretch targets are 4900 then 4917.50.
Levels:
Volume profiles, gaps, and measured moves:
