NASDAQ futures are coming into Thursday gap up, the fourth gap up this week, after an overnight session featuring normal range and volume. Price worked higher overnight during a balanced session. Several companies posted stronger-than-expected earnings, including Tesla:
Tesla Reports Q2 Adj. EPS $(1.33) vs $(1.80) Est., Sales $2.79B vs $2.55B Est
At 8:30am Initial/Continuing jobless claims data came out mixed.
Also on the economic calendar today we have ISM Service/Non-manufacturing Composites and Factory Orders at 10am.
Yesterday we printed a normal variation down. The day began with a gap up. We briefly probed the weekly high then reversed and drove lower. The gap was filled and we continued lower, down to the lower ATR band before two-way trade ensued.
Heading into today my primary expectation is for buyers to press off the open and probe the Wednesday high 5935.50. Look for sellers up at 5942.75 and two way trade to ensue.
Hypo 2 sellers press into the overnight inventory and close the gap down to 5910.75 then continue lower, down through overnight low 5895.75. Look for buyers down around 5870 and two way trade to ensue.
Hypo 3 stronger sellers press below last Thursday’s low 5844.75. Look for buyers down at 5840.75 and two way trade to ensue.
Levels:
Volume profiles, gaps, and measured moves:
