NASDAQ futures are coming into Wednesday flat after an overnight session featuring normal range and volume. Price worked just above the Tuesday high overnight before settling into balanced trade along the Tuesday high. At 7am MBA Mortgage applications came in below last week. At 8:15am the ADP Employment change was much better than expected.
STRONG ADP. 263,000 jobs created in March vs. expectations of 185,000. (Though weirdly a significant downward revision to last month)
— Joe Weisenthal (@TheStalwart) April 5, 2017
Also on the economic docket today we have Service/Non-manufacturing Composite at 10am, crude oil inventories at 10:30am, and most importantly the FOMC minutes at 2pm.
Yesterday we formed a normal variation up. Price opened gap down, but inside the Monday range. Buyers made an early gap fill and found sellers right along the UNCH line. Said sellers reversed the morning move but we unable to push range extension down. Instead we spent the rest of the day working higher, but ultimate inside the Monday range.
Heading into today my primary expectation is for buyers to push higher, up through overnight high 5448 and to new highs, tagging the measured move level at 5462.50 before two way trade ensues ahead of the FOMC minutes.
Hypo 2 sellers press down through overnight low 5435.5 and tag 5434.50 before two way trade ensues.
Hypo 3 stronger buyers ahead of FOMC push up to 5481.75 before we await the Fed.
Hypo 4 stronger sellers press down to 5418.
Levels:
Volume profiles, gaps, and measured moves:
