NASDAQ futures are coming into Thursday gap down after an overnight session featuring elevated volume and normal range. Price briefly poked above the Wednesday cash high before rotating back down to the midpoint. At 8:30am housing starts came out below expectations and initial/continuing jobless claims data came out mixed.
Also on the economic calendar today we have crude oil at 11am and a 10-year TIPS auction at 1pm.
Yesterday we printed a double distribution up. The day began with a gap up that sellers quickly closed off the open. Then a strong responsive bid stepped in and slowly drove price higher for the rest of the day. It ended up being an inside day.
Heading into today my primary expectation is for buyers to work into the overnight inventory and close the gap up to 6824.50. From here we continue higher, up though overnight high 6836.50. Then a test above record high 6845.75 before two way trade ensues.
Hypo 2 sellers press down through overnight low 6798.25 and tag 6782.75 before two way trade ensues.
Hypo 3 stronger sellers trade down to 6771.50 before two way trade ensues.
Levels:
Volume profiles, gaps, and measured moves:
