NASDAQ futures are coming into Wednesday flat after an overnight session featuring elevated range on extreme volume. Price was choppy overnight, with price bracketing in a wide range below the Tuesday midpoint. As we approach cash open, price is hovering below the Tuesday midpoint.
On the economic calendar today we have crude oil inventories at 10:30am, a 2-year note auction at 11:30am, and a 5-year note auction at 1pm.
Yesterday we printed a normal variation down. The day began with a gap up and spike higher. We formed a sharp excess high at the Monday midpoint and began to auction lower. Sellers eventually closed the overnight gap. Late in the session, around 3:45pm, we ramped higher into the bell but still closed well-below the daily mid.
Heading into today my primary expectation is for buyers to work up through overnight high 7403.75 setting up a move to tag the Tuesday VPOC at 7414.50 before two way trade ensues.
Hypo 2 stronger buyers trade us up to 7460.25 before two way trade ensues.
Hypo 3 sellers work down through overnight low 7359.50 setting up a move to target 7314.50 before two way trade ensues.
Levels:
Volume profiles, gaps, and measured moves:
