NASDAQ futures are coming into Friday gap down after an overnight session featuring extreme range and volume. Price was balanced overnight, ticking up near the Thursday high but not exceeding it, forming a weak high before falling out of balance around 8:30pm New York. From then on, the Globex session was spent drifting lower. The first tag of the Thursday midpoint saw responsive buyers actively engaged, but they were eventually over run via a slow grind lower. As we approach cash open, price is hovering below the Thursday midpoint at 7700.
On the economic calendar today we have University of Michigan’s final reading of sentiment at 10am.
There will likely be continued attention on capitol hill today, as we await the approval of the $2+T relief package to clear the house.
Yesterday we printed a normal variation up that was accented with a late-day ramp higher. The day began with a gap up and drive higher, leaving the open gap behind as buyers worked up to the 7700 composite VPOC. We marked time along this level, chopping up above the mid all day before a strong surge higher into the closing bell. This late-day action took prices up into the upper quadrant of the Friday the 13th range. We ended the day near the highs.
Heading into today my primary expectation is for buyers to work into the overnight inventory and close the gap up to 7846.50, setting up a move up through overnight high 7893.25. Look for sellers up at 8000 and two way trade to ensue.
Hypo 2 stronger buyers sustain trade above 8000 setting up a second leg higher to 8100. Look for sellers up at 8179.50.
Hypo 3 sellers press down through overnight low 7618.75 setting up a move down to 7526.25 before two way trade ensues.
Volume profiles, gaps and measured moves:
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