NASDAQ futures are coming into Thursday flat after an overnight session featuring normal range on extreme volume. Price worked higher overnight, trading up beyond the Wednesday high before settling into balance. At 8:30am initial/continuing jobless claims data came out better-than-expected. As we approach cash open, price is hovering at the Wednesday high.
Also on the economic calendar today we have 4-and 8-week T-bill auctions at 11:30am followed by a 30-year bond auction at 1pm.
Yesterday we printed a normal variation up. The day began with a gap up in range. Sellers were unable to resolve the overnight gap, instead we began to campaign higher, closing the Monday gap before drifting back down to the daily mid before the 2pm FOMC minutes. Third reaction after the FOMC minutes was up and we spent the rest of the day auctioning higher, eventually closing near session high.
Heading into today my primary expectation is for sellers to press down through overnight low 7624.50 setting up a move to target 7615 before two way trade ensues.
Hypo 2 stronger sellers trade down to tag the 7600 century mark. Look for buyers down at 7588.75 and two way trade to ensue.
Hypo 3 buyers press up through overnight high 7661 setting up a move to close the open gap at 7665.50 before pausing, building steam then making a second thrust higher to tag the 7700 century mark before two way trade ensues.
Volume profiles, gaps, and measured moves:
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