NASDAQ futures are coming into Friday gap down after an overnight session featuring elevated range and volume. Price worked lower overnight, tagging the Thursday midpoint before discovering a responsive bid and coming into balance.
We have two economic events to watch out for today. At 10am the University of Michigan will deliver their primary November reading of sentiment. Then at 2pm a monthly budget statement.
Yesterday we printed a neutral extreme up. The day began with a significant gap down. An early gap-and-go-lower-type push discovered an early bid and buyers made an attempt higher. Their efforts were thwarted. Sellers defended an attempt back up into the Wednesday range and this set the stage for a continuation move lower. Price pressed lower through lunch, tagging the naked VPOC left behind last Friday, November 3rd before discovering a strong responsive bid. We then worked higher for the rest of the day, eventually taking out the initial balance high and closing above it, earning the day a neutral extreme designation.
Heading into today my primary expectation is for a move higher to close the overnight gap up at 6314.25. From here we continue higher, up through overnight high 6321. Look for sellers up at 6333 and two way trade to ensue.
Hypo 2 stronger buyers press up and close the Wednesday open gap at 6341.50 before two way trade ensues.
Hypo 3 sellers work down through overnight low 6286.25 and we find a bid around 6272 and two way trade ensues.\
Volume profiles, gaps, and measured moves:
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