NASDAQ futures are coming into the first day of May and the last trading day of the week down a quick -200 after an overnight session featuring extreme range and volume. Price drove lower overnight, perhaps driven by earnings out of major components Amazon and Apple, which both traded lower following their earnings announcements Thursday afternoon. NASDAQ gave back its Wednesday gains before coming into balance, and as we approach cash open price is hovering near Tuesday’s close.
On the economic calendar today we have PMI manufacturing index at 9:45am and ISM manufacturing index along with construction spending at 10am.
Yesterday we printed a normal variation down. The day began with a slight gap down. Sellers spiked the open after a brief open two way auction, and buyers were seen pretty high up into Wednesday’s range, near the upper quadrant defending. These buyers were eventually overrun as we went down and tagged the Wednesday VPOC before a choppy balance ensued into the close. There was a ramp higher into the bell before the Amazon and Apple earnings, which during settlement pushed price back down near the lows.
Heading into today my primary expectation is for buyers to work into the overnight inventory and trade up to 8846.50. A battle ensues here before we eventually continue higher and close the overnight gap up to 8934.50.
Hypo 2 sellers take out overnight low 8725.25 and go a tad lower, down to 8695.50 before a choppy balance ensues.
Hypo 3 stronger sellers liquidate down to 8618.75 before two way trade ensues.
Levels:
Volume profiles, gaps and measured moves:
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