NASDAQ futures are coming into Friday gap up after an overnight session featuring extreme range and volume. Price was balanced for much of the overnight session before ramping higher around 2am New York. This buy rotation pressed up beyond the Thursday high, trading up to levels unseen since last Friday (the 13th) before coming into balance. As we approach cash open, price is hovering just below the Thursday high.
On the economic calendar today we have existing home sales at 10am.
Yesterday we printed a normal variation up. The day began with a gap down and drive lower, with sellers pressing down a bit below the Wednesday midpoint. This was an interesting price level, one that has been marked on my chart for months. Just below the Wednesday midpoint (which was also a distinct low volume node) was the old composite VPOC. Anyhow responsive buyers stepped in here and quickly resolved the overnight gap. From here we continued higher, taking out the Wednesday high and tagging the lower weekly ATR band before rotating back to the daily mid. Another rotation up made a new high of day, we chopped back to the midpoint again, then made another new high. Settlement action saw price fall back to the midpoint for a third time and close just above it.
Heading into today my primary expectation is for sellers to work into the overnight inventory to tag the Thursday VPOC 7380. From here we work higher, taking out overnight high 7629 on our way to tag 7700 composite VPOC before two way trade ensues.
Hypo 2 stronger sellers work a full gap fill down to 7256.25. This sets up a move down through overnight low 7126.25. Look for buyers just below at 7100 and two way trade to ensue.
Hypo 3 buyers gap-and-go higher, pressing up through 7700 with power, setting up a run on 8000.
Volume profiles, gaps and measured moves:
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