NASDAQ futures are coming into Friday with a small gap down after an overnight session featuring extreme range and volume. Price worked higher, making a new 7-day high before a sharp responsive sale stepped in around midnight and has continued to impress the market lower since. At 8:30am durable goods orders came in below expectations.
Jerome Powell will start speaking at 9:20am on the topic of Fed transparency and stability. This is likely to cause a bit more noise in the early morning trade. We also have the final May reading of Sentiment from University of Michigan at 10am.
Yesterday we printed a normal variation down. The day began with a small gap down which buyers quickly filled. Then we went lower from there rapidly, before stalling ahead of the Wednesday low. Then we rallied for the rest of the day but never pushed range extension up. Normal variation down.
Heading into today my primary expectation is for a choppy open. Look for a move down to 6930.50 then buyers step in and close the overnight gap 6956.50 before two way trade ensues.
Hypo 2 buyers work right off the open, up to close the gap 6956.50 then continue higher, working up through overnight high 7003.75 before two way trade ensues.
Hypo 3 stronger sellers trade us down to 6871.50 before two way trade ensues.
Volume profiles, gaps, and measured moves:
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