NASDAQ futures are coming into Wednesday with a slight gap up after an overnight session featuring normal range and volume. Price bounced around inside the upper quadrant of Tuesday’s range in an overall balanced manner. At 7am MBA mortgage applications came in better than last week.
Also on the economic docket today we have Pending Home Sales at 10am, crude oil inventories at 10:30am, a 2-year floating rate auction at 11:30am, then a 7-year Note auction at 1pm.
Yesterday we printed a double distribution trend up. Price opened flat, attempted lower but buyers kept price in the upper quad of the Monday trend day. From there we began to rally, up through the sell-off from last Tuesday before some late-afternoon sellers stepped in.
Heading into today my primary expectation is for sellers to push into the overnight inventory and close the gap down to 5405.50. Look for buyers down near 5390 and two way trade to ensue.
Hypo 2 buyers press up through overnight high 5418.75 and probe above the Tuesday high 5424.75 setting up a run to all-time high 5441.
Hypo 3 strong sellers press down to 5374.25 before two way trade ensues.
Levels:
Volume profiles, gaps, and measured moves:
