NASDAQ futures are coming into Friday gap up after an overnight session featuring extreme range and volume. Price worked higher overnight and trading up near Thursday’s high as we approach cash open. At 8:30am advance goods trade balance and non-farm payroll data came out stronger-than-expected.
Also on the economic calendar today we have ISM non-manufacturing at 10am.
Yesterday we printed a double distribution trend down. The day began with a slight gap up that was resolved during the opening two-way auction before we headed higher and tagged the 7800 handle. Sellers stepped in here and drove lower, pushing us RE down and continuing lower, tagging the 7700 handle before settling into balance. We ended the day chopping below the daily mid point.
Heading into today my primary expectation is for buyers to gap-and go higher, testing up through Thursday high 7805 which sparks a move up to 7830.75 before two way trade ensues.
Hypo 2 stronger buyers tag the naked VPOC at 7840 before two way trade ensues.
Hypo 3 sellers press into the overnight inventory and close the gap down to 7736.50. Sellers continue lower, down through overnight low 7724. Look for buyers down at 7711 and two way trade to ensue.
Volume profiles, gaps, and measured moves:
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