NASDAQ futures are coming into Thursday gap up after an overnight session featuring extreme range and volume. Price was balanced overnight with trade contained inside the Wednesday range. At 8:30am PCE core data was in-line with expectations while Initial/Continuing jobless claims data was below expectations.
Also on the economic agenda today we have U of Michigan’s final read of March sentiment at 10am.
Yesterday we printed a neutral day. The day began gap down, and after an early battle pushed price below the Tuesday low responsive buyers stepped in and closed the gap. Then we attempted lower again, and again we found responsive buyers. This time we traversed the entire range pushing us neutral. We then settled back to the daily midpoint for the rest of the session.
Neutral.
Heading into today my primary expectation is for sellers to work into the overnight inventory and close the gap down to 6478.50. Look for buyers ahead of 6470 and two way trade to ensue.
Hypo 2 buyers gap-and-go higher, up through overnight high 6540.50 setting up a move to target 6600 before two way trade ensues.
Hypo 3 sellers press down through overnight low 6469 setting up a retest of the lows 6421. Look for buyers ahead of 6400 and two way trade to ensue.
Levels:
Volume profiles, gaps, and measured moves:
