NASDAQ futures are coming into Friday gap down after an overnight session featuring extreme volume on elevated range. Price worked lower overnight during a balanced session. As we approach cash open price is hovering near the Thursday low.
On the economic calendar today we have industrial/manufacturing production at 9:15am and the University of Michigan’s primary June reading at 10am.
Yesterday we printed a normal variation up. The day began with a gap up in range which sellers were unable to fill. This setu up a move to new record highs. Buyers became initiative in the afternoon and we closed near the daily high.
Heading into today my primary expectation is for buyers to work into the overnight inventory and close the gap up to 7312 setting up a move up through overnight high 7318.75. Open air.
Hypo 2 sellers gap-and-go down through Thursday low 7261.25 setting up a move to target 7249.50 before two way trade ensues.
Hypo 3 stronger sellers close the gap down at 7230.25 before two way trade ensues.
Volume profiles, gaps, and measured moves:
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