NASDAQ futures are coming into Wednesday with a slight gap down after an overnight session featuring elevated range and volume. Price was balanced overnight, chopping along the upper quadrant of Tuesday’s range. As we approach cash open, price is hovering in the upper quadrant of Tuesday’s range.
On the economic calendar today we have ISM manufacturing and construction spending at 10am followed by FOMC minutes at 2pm.
Yesterday we printed a trend up. The day began with a slight gap down that buyers quickly resolved with an open drive up. The drive continued all morning, tagging 10,100 before coming into balance for a bit. Then the trend resumed around 2:45pm, working higher into the bell and ending up in last Wednesday’s range.
Heading into today my primary expectation is for buyers to work into the overnight inventory and close the gap up to 10,132.25. From here we continue higher, up through overnight high 10,157.75. Look for sellers up at 10,200 and two way trade to ensue.
Hypo 2 stronger buyers trade up to 10,227.75 before two way trade ensues.
Hypo 3 sellers press down through overnight low 10,075. Look for buyers down at 10,056.75 and two way trade to ensue.
Volume profiles, gaps and measured moves:
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