NASDAQ futures are coming into Thursday flat after an overnight session featuring extreme range and volume. Price worked sideways overnight, chopping along the top-side of Wednesday highs for most of the Globex session before rotating back into Wednesday range. From there onward we held balance in the upper quadrant. As we approach cash open, price is hovering near Wednesday high.
On the economic calendar today we have Chicago Purchasing Manager at 9:45am followed by 4- and 8-week T-bill auctions at 11:30am.
All important earnings for the week are out after Apple and Facebook appeased investors with strong earnings. Big Tech continues to drive broad market action:
Apple Q4 EPS $3.03 Vs $2.91 Last Year Apple Sees Q1 Sales $85.5B-$89.5B vs $86.92B Est. Facebook Q3 EPS $2.12 Beats $1.91 Estimate, Sales $17.38B Beat $17.36B Estimate
Yesterday the NASDAQ printed a double distribution up. The day began with a gap up in range that sellers worked down into during an open drive down. The selling accelerated into the weekend gap, filling the gap before forming a sharp excess low. Price then reclaimed the midpoint and chopped sideways all over it before the Fed cut its benchmark borrowing rate by 25 basis points. The initial reaction to this was mute, but eventually third reaction was up and we worked up to 8100 before chopping into the bell. During settlement the earnings mentioned above spiked price to a new daily high but did not take out all-time high before cash close.
Heading into today my primary expectation is for buyers to work up through overnight high 8141. Look for sellers up at 8150 and two way trade to ensue.
Hypo 2 sellers press down through overnight low 8081.50 setting up a move to target 8069.50 before two way trade ensues.
Hypo 3 stronger sellers trade down to 8050 before two way trade ensues.
Volume profiles, gaps, and measured moves:
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