NASDAQ futures are coming into Wednesday gap down after an overnight session featuring normal range and volume. Price held the Tuesday range overnight and the main feature of the session is a sell rotation that began around 5am and continues as we approach opening bell. At 7am MBA Mortgage Applications came in at -0.7%. Better than last week.
Also on the economic docket today we have JOLTS Job Openings at 10am, crude oil inventories at 10:30am, and Consumer Credit at 3pm.
Yesterday we printed a normal variation down. Price was choppy and balanced. In the morning we exceeded the Monday high by a few ticks before falling back into range. Then just before lunch we went range extension down by a tick before pushing back into range. Overall it appears the market is in balance and waiting for new information before exploring new prices.
Heading into today my primary expectation is for buyers to work into the overnight inventory and close the gap up to 4787.75. Sellers remain persistent and defend around the Tuesday close 4787.75 and then work down through overnight low 4775.75 setting up a move to target 4752.75 before two way trade ensues.
Hypo 2 buyers close gap up to 4787.75 then take out overnight high 4795.25 triggering a rally up to the open gap at 4821.50 before two way trade ensues.
Hypo 3 sellers gap-and-go lower, tag 4752.75 and two way trade ensues.
Hypo 4 strong sellers push down through 4750 and sustain trade below it triggering a liquidation down to the gap at 4738.25.
Levels:
Volume profiles, gaps, and measured moves:
ES stuck in the mud