NASDAQ futures are coming into Friday gap up after an overnight session featuring elevated range and volume. Price was balanced during much of globex before springing higher early Friday morning.
The economic calendar is light today. We have the preliminary sentiment reading out of University of Michigan at 10am.
Yesterday we printed a normal variation up. The day began with a gap down that was quickly filled. Then we chopped along, in balance, eventually breakup up through initial balance high in the afternoon. Then we settled back down to the midpoint by end-of-day.
Heading into today my primary expectation is for buyers to gap-and-go higher, up through overnight high 6852.75. From here we continue higher, probing record highs into the weekend.
Hypo 2 sellers ahead of 6844, working into the overnight inventory and closing the gap down to 6812.25. From here we continue lower, down to 6809.50 before two way trade ensues.
Hypo 3 a liquidation is somehow triggered, taking us down to 6782.50 before two way trade ensues.
Levels:
Volume profiles, gaps, and measured moves:
If Russell takes out yesterday’s low, small caps may be the trigger for lower overall.