NASDAQ futures are coming into Friday gap down after a session featuring extreme range and volume. Price worked lower overnight and as we approach cash open price is hovering below the Thursday low.
On the economic docket today we have U of Michigan sentiment at 10am.
Yesterday we printed a double distribution trend down. The day began gap up, which was quickly filled, then after some violent two-way action price gave way to selling.
Then we went into balance. But right after lunch President Trump announced a saber-rattling steel and aluminum tarrif directly targeting the Chinese, who are enjoying the end of their annual holiday, Chinese new year. It sent markets careening lower into the end of the day.
Heading into today my primary expectation is for sellers to press down to 6600 before two way trade ensues.
Hypo 2 buyers attempt back into Thursday low 6689 but are rejected, sending us down to 6600 before two way trade ensues.
Hypo 3 buyers regain Thursday low 6689 and work up to 6764 before two way trade ensues.
Levels:
Volume profiles, gaps, and measured moves:
“Connections”
You might enjoy James Burke’s exploration https://archive.org/details/james-burke-connections_s01e01
That’s dope vid ferd. Thanks! Moors law. Shit is getting weird. Let’s try to make it good