NASDAQ futures are coming into Friday with a slight gap down after an overnight session featuring elevated range and volume. Price was balanced overnight, balancing along and occasionally exceeding the Thursday high. As we approach cash open, price is hovering in the upper quadrant of Thursday’s range.
On the economic calendar today we have consumer sentiment at 10am.
Yesterday we printed a normal variation up. The day began with a slight gap down. Buyers closed the gap during the opening swing before sellers drove down and took out the Wednesday low. That would be all the control sellers would have for the session though, by 10am sharp responsive buying had stepped in and the auction reversed higher. The rest of the session was chop along the top side of the daily midpoint before a strong ramp into the close saw price up through Wednesday’s midpoint.
Heading into today my primary expectation is for sellers to work down through overnight low 10033 setting up a tag of 10022 before two way trade ensues.
Hypo 2 stronger sellers trade down and tag 10000 on their way to 9968.50.
Hypo 3 buyers work into overnight inventory and take out overnight high 10120.50 setting up a move to 10131.
Volume profiles, gaps, and measured moves:
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