NASDAQ futures are coming into Friday gap down after an overnight session featuring normal range and volume. Price worked down through the Wednesday/Thursday low overnight and tested the Tuesday high before settling into balanced trade.
On the economic calendar today we have ISM Non-manufacturing Composite at 10am, Baker Hughes rig count at 1pm, and an economic outlook speech from Fed Chair Yellen at 1pm.
Yesterday we printed a double distribution trend down. Sellers engaged the market all morning and became initiative late in the afternoon. They were unable to take out the Wednesday low during the regular session before two way trade ensued.
Heading into today my primary expectation is for buyers to work into the overnight inventory and close the gap up to 5365.25. Buyers continue higher, up through overnight high 5345.50 to tag 5372.50 before two way trade ensues.
Hypo 2 sellers work down through overnight low 5345.25 and target the open gap down at 5332 before two way trade ensues.
Hypo 3 strong buyers sustain trade above 5372.50 setting up a move to target 5380.75 before two way trade ensues.
Levels:
Volume profiles, gaps, and measured moves:
