NASDAQ futures are coming into Thursday with a slight gap down after an overnight session featuring normal range and volume. Price was balanced and held the Wednesday range overnight. The ADP Employment data at 8:15am came out below expectations while Initial/Continuing Jobless Claims data at 8:30am was mixed. However, investors are more likely to react to the upcoming Non-farm Payroll data which is due out Friday morning.
Also on the economic docket today we have Non-Manufacturing Composite data at 10am and crude oil inventory at 11am.
Yesterday we printed a normal variation up. The day began with a gap up and drive higher which initially faded after trading 1-tick above last Thursday’s high. However, sellers became initiative before lunchtime and pressed range extension up, reclaiming the well-developed value zone established late last year.
Heading into today my primary expectation is for sellers to press down through overnight low 4920.50 and close the open gap down at 4907. Look for buyers at the 4907 zone and two way trade to ensue.
Hypo 2 buyers work into the overnight inventory and close the gap up to 4933 before working up through overnight high 4936.50. Price continues higher, up to 4953.25 before two way trade ensues.
Hypo 3 strong buyers press up beyond 4953.25 and sustain trade above it setting up a rally to 4984.25 before two way trade ensues.
Levels:
Volume profiles, gaps, and measured moves:
