NASDAQ futures are coming into Thursday gap up after an overnight session featuring normal range and volume. Price worked higher overnight after spending most of the evening in balance. At 8:30am initial/continuing jobless claims data came out mixed.
Also on the economic calendar today we have a 30-year bond auction at 1pm and a monthly budget statement at 2pm.
Yesterday we printed a normal variation up. The day began gap down, down below the Tuesday range. Buyers worked into the overnight inventory but were rejected from regaining the Tuesday range. We then took out overnight low. After that a strong responsive bid stepped in and we spent the rest of the day slowly working higher, eventually closing on session high.
Heading into today my primary expectation is for sellers to work into the overnight inventory and close the gap down to 6677.25. From here we continue lower, down through overnight low 6664.25. Look for buyers down at 6647.25 and two way trade to ensue.
Hypo 2 buyers defend ahead of 6670 setting up a move to take out overnight high 6697.75 and make a run to test record high mark 6707.25 before two way trade ensues.
Hypo 3 stronger sellers trade us down to 6622.75 before two way trade ensues.
Volume profiles, gaps, and measured moves:
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