Futures of the NASDAQ are coming into Thursday gap down after an overnight session featuring extreme range and volume. Price pushed a touch beyond record highs during extended trade before a strong responsive bid stepped in and knocked the market more than 60 points off its high. As we approach cash open buyers are attempting to make a move back into the Wednesday range. At 8:30am Initial/Continuing jobless claims data were mixed.
Also on the economic docket today we have a 30-year bond auction at 1pm.
Yesterday we printed a trend up. The day began flat and after a two-way auction we began discovering higher prices, slowly, tagging the weekly ATR band above and stalling at the end of the day.
Heading into today my primary expectation is for sellers to reject a move back into Wednesday’s low 6307.75 setting up a move to take out overnight low 6286.25. From here we poke down to 6283 before two way trade ensues.
Hypo 2 stronger sellers press down to 6263.50.
Hypo 3 buyers reclaim the Wednesday low 6286.25 setting up a gap fill up to 6341.50. Look for sellers right around here and two way trade to ensue.
Volume profiles, gaps, and measured moves:
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