NASDAQ futures are coming into Friday gap down after an overnight session featuring elevated range and volume. Price worked down below Tuesday’s low, Tuesday the conviction trend up day. Shortly after price came into balance. As we approach cash open price is hovering around inside yesterday’s lower quadrant.
There are no economic events today.
Yesterday we printed a normal variation down. We started out gap down and drove lower. Just below the Wednesday low a responsive bid stepped in but a session high was made in the first hour. Sellers became initiative in the late morning and pushed us deep down into Tuesday’s trend up. Much chop occurred here before an afternoon ramp took hold. We ended the day well below the daily midpoint.
Heading into today my primary expectation is for buyers to work into the overnight inventory and close the gap up to 6777. From here we continue higher, up through overnight high 6790.25. Look for sellers up at 6791.75 and two way trade to ensue.
Hypo 2 sellers make a quick rejection down and out of the Thursday low 6755.25 setting up a move down through overnight low 6733.75. Look for buyers down at 6724.25 and two way trade to ensue.
Hypo 3 stronger buyers sustain trade above 6800 setting up a move to close the open gap way up to 6843.
Volume profiles, gaps, and measured moves:
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