NASDAQ futures are coming into Wednesday gap up after an overnight session featuring normal range and volume. Price held Tuesday range during extended trade, slowly retracing the impulsive sell-move seen late Tuesday afternoon. At 7am MBA mortgage applications was a huge number. Housing is hot.
Also on the economic calendar today we have crude oil inventories at 10:30 am. This data may be looked at more closely amid the negative news flowing out of Persia (Iranian gunners in their ‘Parliament’ building and Qatar being eliminated by its brethren). We also have consumer credit at 3pm.
Yesterday the NASDAQ printed a neutral extreme down. Price worked higher all morning, and after briefly going range extension up, to new record highs, we fell back into the midpoint.
Like a potential failed auction.
Then, late in the day the failed auction confirmed when a hard sell pushed through the marketplace.
Heading into today my primary expectation is for sellers to press into the overnight inventory and closer the gap down to 5863.75. From here we continue lower, down through overnight low 5858.75 and 5857.25 before two way trade trade ensues.
Hypo 2 buyers work higher, up to 5887.75 before two way trade ensues.
Hypo 3 strong sellers press down though 5853.25 triggering a liquidation down to 5838.
***Note: profiles are thin in both directions, today’s action could be fast***
Volume profiles, gaps, and measured moves: