NASDAQ futures are coming into Thursday gap down after an overnight session featuring normal range and volume. Price worked lower overnight, and as we approach cash open we are hovering along the Wednesday lows. At 8:30am initial/continuing jobless claims data came out mixed.
Also on the economic calendar today we have leading index at 10am and a 10-year TIPS auction at 1pm.
Yesterday we printed a normal variation up. The day began gap up and with sellers unable to quite fill the small gap. Instead buyers stepped in and drove higher a few times, stalling ahead of the Monday high and settling into two-way trade.
Heading into today my primary expectation is for sellers to test down through overnight low 6898 and close that gap down at 6890.50 then continue lower, down to 6871 before two way trade ensues.
Hypo 2 stronger sellers trade us down to 6843 before two way trade ensues.
Hypo 3 buyers work into the overnight inventory and close the gap up to 6937.50 setting up a move to take out overnight high 6944.50. Look for sellers up at 6959 and two way trade to ensue.
Levels:
Volume profiles, gaps, and measured moves:
