NASDAQ futures are coming into Thursday gap down after an overnight session featuring elevated range and volume. Price worked higher overnight, briefly probing into the 5/14 range before settling into balance. At 8:30am initial/continuing jobless claims data came out mixed.
Also on the economic calendar today we have existing home sales at 10am and a 7-year note auction at 1pm.
Yesterday we printed a double distribution trend up. The day began with a gap down-and-out of the large value area that began forming May 15th. Buyers drove higher off the open and after some two-way trade along the Tuesday low buyers became initiative and the market went trend up into the close.
Heading into today my primary expectation is for buyers to work into the overnight inventory and close the gap up to 6957. From here we continue higher, up through overnight high 6975 before two way trade ensues.
Hypo 2 stronger buyers sustain trade above 6963 setting up a move to target 6989.50 before two way trade ensues.
Hypo 3 sellers press down through overnight low 6925.25 setting up a move to target 6900 before two way trade ensues.
Levels:
Volume profiles, gaps, and measured moves:
