NASDAQ futures are coming into Wednesday gap down after an overnight session featuring normal range and volume. Price was balanced overnight but as we approach cash open a bit of selling pressure has pushed us near Tuesday’s low.
On the economic calendar today we have crude oil inventories at 10:30am and a 10 year Note auction at 1pm.
Yesterday we printed a normal variation down. The day began with a gap up and wide open auction. Buyers stalled just before putting us RE up and we traversed the daily range to go RE down by a few ticks. Sellers were not, however, unable to close the Monday gap. Instead we closed near session high.
Heading into today my primary expectation is for buyers to work into the overnight inventory and close the overnight gap up to 7477.75. From here we continue higher up through overnight high 7481.75. Look for sellers up at 7494.25 and two way trade to ensue.
Hypo 2 sellers gap and go lower, down to close the gap at 7444 then look for buyers down at 7438 before two way trade ensues.
Hypo 3 stronger buyers trade up to 7505.25 before two way trade ensues.
Volume profiles, gaps, and measured moves:
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