NASDAQ futures are coming into Friday gap up after an overnight session featuring extreme range and volume. Price worked a few points below the Thursday low during globex before a strong responsive bid stepped in and drove price 130 points uni-directionally higher. Sellers were found ahead of the Thursday high and we spent the rest of the session balancing/flagging. At 8:30am Non-farm payroll data came out mixed and as we approach cash open price is hovering near overnight high, in the upper quadrant of Thursday’s cash range.
Also on the economic agenda today—at 10:30am we have a panel interview featuring Fed chairman Jay Powell and former chairmen Yellen and Bernanke, then at 11am crude oil inventories.
Yesterday we printed a normal variation down. The day opened with a gap down and after a brief two-way auction sellers worked price down through overnight low. A responsive bid stepped in by was eventually overrun later in the afternoon as price worked back down to tag the 12/27 naked VPOC at 6148.75. We ended the day near session low.
Heading into today my primary expectation is for buyers to gap-and-go higher, trading up through overnight high 6286.25. From here we continue higher, to close the open gap at 6370. Look for sellers up at 6400 and two way trade to ensue.
Hypo 2 buyers stall out around 6300 and two way trade ensues.
Hypo 3 sellers work into the overnight inventory and close the gap down to 6163.50 which sets up a move to target 6100 before two way trade ensues.
Volume profiles, gaps, and measured moves:
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