NASDAQ futures are coming into Wednesday flat after an overnight session featuring normal range on elevated volume. Price worked to a new record high overnight before settling into balance along Tuesday’s high. As we approach cash open, price is hovering at the Tuesday high.
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.
More importantly for auction behavior on the NASDAQ, we have Microsoft, Facebook, and Tesla reporting earnings after the bell.
Yesterday we printed a trend up. The day began with a gap up and open-test-drive, with price opening just up beyond the Monday close. A brief test lower discovered a strong responsive bid and price drove higher. Up in open air, the auction continued exploring higher prices for the rest of the session.
Trend up.
Heading into today my primary expectation is for price to continue discovering higher prices. Look for sellers to step in ahead of 7860 and two way balance to ensue.
Hypo 2 stronger buyers trade up the the 7900 century mark before two way trade ensues.
Hypo 3 sellers press down through overnight low 7816 setting up a move to target the 7800 century mark before two way trade ensues.
Levels:
Volume profiles, gaps, and measured moves:
