NASDAQ futures are coming into Thursday gap up after an overnight session featuring normal range and volume. Price worked higher overnight, reversing the Wednesday afternoon selling but holding inside the Wednesday range.
On the economic calendar today we have Initial/Continuing jobless claims at 8:30am. At the same time, the Philadelphia Fed data is out. Other economic events include Leading Indicators at 10am, and a 5-year TIPS auction at 1pm.
Yesterday we printed a neutral extreme down. Price opened pro gap up, saw an early rally that briefly went range extension up before reversing down through the entire range and giving back most of the gap.
Heading into today my primary expectation is for sellers to work into the overnight inventory and close the gap down to 5396.50. From here we continue lower, down through overnight low 5394 and close the open gap down at 5389.50 before two way trade ensues.
Hypo 2 buyers gap-and-go, up through overnight high 5418.25, Buyers continue higher, up to 5424.50 before two way trade ensues.
Hypo 3 strong buyers rally up to 5432.25 before two-way trade ensues.
Volume profiles, gaps, and measured moves:
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