NASDAQ futures are coming into Thursday gap up after an overnight session featuring extreme range on elevated volume. Price was balanced overnight, until about 3:30am New York when a strong rally took shape. At 8:30am initial/continuing jobless claims data came out mixed.
Also on the economic agenda today we have new home sales at 10am and a 7-year Note auction at 1pm.
Yesterday we printed a neutral extreme down. The day began with a slight gap up and two way auction. After very briefly going range extension up, sellers defended 7000 and then pushed down through the entire daily range. The selling accelerated though lunchtime, briefly tagging the naked volume point of control from Tuesday before a responsive bid stepped in and two-way trade ensued.
Heading into today my primary expectation is for sellers to work into the overnight inventory and close the gap down to 6932.50. We continue lower, down through overnight low 6921.50 before two way trade ensues.
Hypo 2 buyers defend ahead of 6960 and we work higher, up through overnight high 6987.25. Look for sellers up at 6996.50 and two way trade to ensue.
Hypo 3 strong buyers gap-and-go higher, sustain trade above 6998.75 and thrust back to record highs.
Levels:
Volume profiles, gaps, and measured moves:
