NASDAQ futures are coming into Wednesday flat after an overnight session featuring normal range on elevated volume. Price worked sideways overnight in a balanced manner. At 8:30am housing starts and building permits data came out below and above expectations, respectively.
Also on the economic calendar today we have industrial/manufacturing production data at 9:15am and crude oil inventories at 10:30am.
Yesterday we printed a normal variation down. The day began gap down below the Thursday-Friday-Monday range. Sellers drove lower off the open to prices unseen since last Wednesday before a sideways chop took hold. Said chop went range extension down briefly before reverting back to the daily mean.
Heading into today my primary expectation is for sellers to press down through overnight low 6875.50 setting up a move to target the open gap at 6843. Look for buyers at 6841 and two way trade ensuing, perhaps marking the low-of-the-week.
Hypo 2 buyers work up through overnight high 6907 setting up a test above Tuesday high 6817.25 before two way trade ensues.
Hypo 3 stronger buyers drive up to 6958.50 before two way trade ensues.
Volume profiles, gaps, and measured moves:
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