NASDAQ futures are coming into Thursday gap up after an overnight session featuring elevated range and volume. Price worked both down below and up above the Wednesday range overnight, and as we head into the open price is holding onto the gains. At 8:30am Initial/Continuing jobless claims data came out mixed.
Also on the economic agenda today we have existing home sales at 10am and a 5-year TIPS auction at 1pm.
Yesterday we printed a normal variation up. The day began with a gap down to about the mid-point of Tuesday’s trend day. A tight, two-way auction eventually broke to the upside but lacked much dynamic follow-through. Overall the session was balanced.
Heading into today my primary expectation is for sellers to work into the overnight inventory and close the gap down to 5847.25. From here we continue lower, down through overnight low 5829. Look for buyers down at 5790.25 and two way trade to ensue.
Hypo 2 gap-and-go higher, close the Tuesday gap up at 5878.75 then continue higher to 5893.50 before two way trade ensues.
Hypo 3 stronger buyers sustain trade around 5900, setting up a rally up to 5924.25 and negating the bunker buster entirely.
Levels:
Volume profiles, gaps, and measured moves:
just another fed circle jerk before they send their kids off to college and get useless economics degrees