NASDAQ futures are coming into Wednesday with a slight gap down after an overnight session featuring normal range and volume. Price held the Tuesday range on balanced trade. At 7am MBA Mortgage applications were better than last week.
Also on the economic calendar today we have crude oil inventories at 10:30am, a 30-year bond auction at 1pm, and a Monthly Budget Statement at 2pm.
Yesterday we printed a normal variation down. The day began gap down, a brief move higher closed the gap before sellers stepped in and drove the market lower, testing down into 3/27 prices, making a new low for April before recovering much of the move throughout the rest of the day.
Heading into today my primary expectation is for sellers to work into the overnight inventory and close the gap up to 5402.75. From here the continue higher, up through overnight high 5412.75. Look for sellers just above at 5415.25 and two way trade to ensue.
Hypo 2 sellers press down through overnight low 5386.25. Look for buyers down at 5374.50 and two way trade to ensue.
Hypo 3 stronger buyers press up to 5430.50 before two way trade ensues.
Volume profiles, gaps, and measured moves:
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