NASDAQ futures are coming into Wednesday gap up after an overnight session featuring elevated range and volume. Price was balanced for most of the globex session before breaking higher early morning. At 9am house price index data came out slightly below expectations.
Also on the economic docket today we have manufacturing/composite/service PMI data at 9:45am, existing home sales at 10am, crude oil inventories at 10:30am, a 2-year floating rate auction at 11:30am, and a 5-year note auction at 1pm.
Yesterday we printed a short squeeze shaped, normal variation up. The day began with a gap up and drive higher. It quickly went range extension up then flagged sideways for the rest of the day.
Heading into today my primary expectation is for sellers to work into the overnight inventory and attempt to regain the Tuesday high 6975. Look for buyers to reject a move back into the range and work us up through overnight high 6995.50 before two way trade ensues.
Hypo 2 sellers work a full gap fill down to 6965.50 then continue lower, down Look for buyers down at 6978 and two way trade to ensue.
Hypo 3 stronger sellers take us down to 6961.25 before two way trade ensues.
Levels:
Volume profiles, gaps, and measured moves:
