NASDAQ futures are coming into Friday gap up after an overnight session featuring normal range and elevated volume. Price began working higher early this morning, and ultimately we held inside of the Thursday range. At 8:30am Durable Goods orders came out below expectations.
The only other economic event scheduled today is the keynote speech from Fed leader Janet Yellen—a decree she will issue from high atop the mountains of Jackson Hole, Wyoming.
Yesterday we printed a normal variation down. The day began with a gap up-and-above the Wednesday range. Sellers drove lower off the open then extended their progress ahead of New York lunch. Then they backed off, and in their wake came a responsive bid, slow and steady, that worked price back to the daily mid-point to end the day.
Heading into today my primary expectation is for a short squeeze. Sellers had several chances this week to make a move and did not, therefore look for price to take out overnight high 5867.75 and close the open Tuesday gap at 5878.75. From here we continue higher, up to 5900 before two way trade ensues.
Hypo 2 stronger buyers carry us to 5925 before two way trade ensues.
Hypo 3 sellers press into the overnight inventory and close the gap down to 5841. They continue lower, down through overnight low 5832. Look for buyers down at 5790.75 and two way trade to ensue.
Levels:
Volume profiles, gaps, and measured moves:
