NASDAQ futures are coming into Thursday gap down after an overnight session featuring normal range on extreme volume. Price was balanced for most of the overnight session before succumbing to a bit of selling pressure around 8am New York. As we approach cash open, price is hovering near Wednesday’s midpoint.
On the economic calendar today we have initial/continuing jobless claims data at 8:30am, 4- and 8-week T-bill auctions at 11:30am and a 30-year bond auction at 1pm.
Yesterday we printed a normal variation up. the day began with a gap up in range that was resolved during an open two-way auction. Then buyers stepped in and worked up near Tuesday high but did not take it out before we settled into a sideways grind ahead of the FOMC meeting announcement. The Fed struck a neutral tone, perhaps a bit more hawkish than expected. Buyers came in after the announcement and worked up beyond the Tuesday high. We consolidated along the highs into day’s end.
Heading into today my primary expectation is for buyers to work into the overnight inventory and close the gap up to 8405. From here we continue higher, up through overnight high 8430. Look for sellers up at 8440 and two way trade to ensue.
Hypo 2 stronger buyers fill the gap up at 8453.75 then continue higher, tagging 8474 before two way trade ensues.
Hypo 3 sellers work down to 8365.25 before two way trade ensues.
Volume profiles, gaps, and measured moves:
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