NASDAQ futures are coming into Friday gap down after an overnight session featuring extreme range and volume. Both measurements are the highest seen since election night in November 2016. Partially driving the action was earnings from Big Tech, including Apple, Amazon, and Google. Apple is a touch lower than its Thursday close, Google lower, and Amazon higher. At 8:30am non-farm payroll data came out strong.
Also on the economic docket today we have factory/durable goods orders at 10am and U. of Michigan will issue their final read of January sentiment at 10am also.
Yesterday we printed a neutral extreme down. The day began with a gap down just below the Wednesday range. Buyers worked the gap filled but could not rally up beyond the Wednesday high before sellers stepped in and worked price back down to the lows—taking out overnight low late in the session and closing the day near session low.
Heading into today my primary expectation is for buyers to work into the overnight inventory and close the gap up to 6896.25. From here we continue higher, up to 6900 before two way trade ensues.
Hypo 2 stronger buyers take us up to 6927.75 before two way trade ensues.
Hypo 3 sellers push down through overnight low 6844.50 and trade down to 6831.25 before two way trade ensues.
Volume profiles, gaps, and measured moves:
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