NASDAQ futures are coming into Wednesday pro gap up after an overnight session featuring extreme volume on elevated range. Price worked higher overnight, beginning to trend higher around 8pm New York and continuing to do so up until now. As we approach cash open, price is hovering near all-time highs.
On the economic calendar today we have wholesale inventories at 10am, crude oil inventories at 10:30am, and the beige book at 2pm.
Yesterday the market printed a neutral day. The day began with a gap up and two-way open auction that eventually gave way to a small push higher. Sellers stepped in just ahead of the 7700 century mark and we went into a tight balance. Volatility during settlement after Netflix and IBM earnings were released caused a spike that rapidly took the market range extension down, then range extension up, before ultimately closing near the midpoint.
Heading into today my primary expectation is for a gap-and-go higher, up through all-time hgih 7728.75. Open air.
Hypo 2 sellers work into the overnight inventory and trade down to 7700 before finding a responsive bid (responsive relative to the open, initiative relative to the close) before two way trade ensues.
Hypo 3 stronger sellers close the gap down to 7680.75 before two way trade ensues.
Volume profiles, gaps, and measured moves:
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