NASDAQ futures are coming into Wednesday gap down after an overnight session featuring NORMAL range on elevated volume. These normalized stats were in-part due to the globex session being halted for several hours at the CME. However, action has been light since the market re-opened around 1:30AM New York, and as we approach cash open, price is hovering inside Tuesday’s range, near the cash session low. At 8:30am advance goods trades balance came in below expectations.
Also on the economic calendar today we have Fed Chairman Jay Powell delivering a testimony to the House finance committee at 9:45am (CNBC may release the prepared remarks a few minutes earlier, like they did yesterday), factory orders at 10am, and crude oil inventories at 10:30am.
Yesterday we printed a normal variation up. The day began with a gap down, and after a brief two way auction price worked higher, closing the overnight gap then continuing higher, up near Monday’s midpoint before setting into-two way trade. Buyers held the daily mid, and late in the session made another push which was sold into near closing bell, putting price back down below the daily mid.
Heading into today my primary expectation is for buyers to work into the overnight inventory and close the gap up to 7121. From here we continue higher, up through overnight high 7127.50. Look for sellers up at 7151.75 and two way trade to ensue.
Hypo 2 stronger buyers sustain trade above 7164.25 triggering a conviction trend up, up to close the gap at 7219 before two way trade ensues.
Hypo 3 sellers gap-and-go lower, trading down through overnight low 7089. Look for buyers down at 7083.50 and two way trade to ensue.
Levels:
Volume profiles, gaps, and measured moves:
