NASDAQ futures are coming into Thursday gap up after an overnight session featuring normal range on elevated volume. Price worked higher overnight, pausing briefly as we explored levels unseen since late-March, and ultimately spending the night campaigning higher. At 8:30am Initial/Continuing jobless claims data came out better-than-expected and CPI data came out mixed.
Also on the economic docket today we have a big Treasury auction; at 1pm the US Treasury will auction off $17 billion in 30-year notes. At 2pm there is a monthly budget statement, and after-market-close NVIDIA is set to report earnings.
Yesterday we printed a double distribution trend up. The day began gap up, out-of-range. Sellers worked into it and soon found a strong responsive bid. Buyers became initiative ahead of lunch and pressed higher before coming into balance at the highs late in the afternoon.
Heading into today my primary expectation is for sellers to wok into overnight inventory but stall around 6907.75 setting up a move to take out overnight high 6823.50. Look for sellers up at 6963.25 and two way trade to ensue.
Hypo 2 sellers work a gap fill down to 6896 and continue lower, down through overnight low 6888.75. Look for buyers down at 6879 and two way trade to ensue.
Hypo 3 stronger sellers trade us down to 6832.50 effectively eliminating Wednesday’s rally.
Levels:
Volume profiles, gaps, and measured moves:
