NASDAQ futures are coming into Friday gap down after an overnight session featuring elevated volume on normal range. Price worked down through the Thursday low overnight before finding a modest bid. As we approach cash open, price is hovering right around the Thursday low.
The only economic event of note today is the Markit data dump of Manufacturing/Service/Composite PMI data at 9:45am.
Yesterday we printed a normal variation down. The day began with a gap down and drive lower, leaving the open gap behind. After about an hour of sellers controlling the market and pressing to a new low on the week, responsive bidders stepped in and two-way trade ensued.
Heading into today my primary expectation is for a gap-and-go lower. Look for sellers to press down through overnight low 5911 and tag the 5900 century mark before two way trade ensues.
Hypo 2 buyers sustain trade above 5919.50 setting up a gap fill up to 5943.75. From here we continue higher, up through overnight high 5947.50. Look for sellers just above at 5948 and two way trade to ensue.
Hypo 3 stronger sellers press down to 5884.50 before two way trade ensues.
Levels:
Volume profiles, gaps, and measured moves:
