NASDAQ futures are coming into Friday gap down after an overnight session featuring extreme range and volume. Price worked down into last Friday’s range overnight after most of the week was spent working higher off the gap up into Monday’s open. As we approach cash open price is hovering just below the Thursday low.
There are no economic events today. However, most active trading has rolled forward to the September contract. The price levels in this report are still in reference to the June contract.
Yesterday we printed a normal variation down. The day began with a gap up and brief push to record highs before reversing and trading lower. Price worked to just below the Wednesday low before a responsive bid stepped in near end-of-day and pushed price back to the daily mean.
Heading into today my primary expectation is for buyers to reclaim the Thursday low 7140.50 setting up a move to close the overnight gap up to 7164.75 before two way trade ensues.
Hypo 2 sellers reject a move up through 7140.50 setting up a move down through overnight low 7077.75. Look for buyers down at 7062.50 and two way trade to ensue.
Hypo 3 stronger buyers trade us up to 7212 before two way trade ensues.
Volume profiles, gaps, and measured moves:
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