NASDAQ futures are coming into Friday gap down about -90 after an overnight session featuring extreme range and volume. Price drove lower overnight around 11pm, taking out the Thursday low and trading down near the 07/14 low before catching a bid around 3:30am New York. As we approach cash open, price is about -50 points below Thursday’s low.
On the economic calendar today we have new home sales at 10am.
Yesterday we printed a double distribution trend down. The day began with a slight gap up in range. After a two way auction price seemed to be settling into a tight chop along the daily midpoint which was right in the middle of Wednesday’s range. Around lunchtime selers stepped in and drove price lower, erasing all the progress made during Monday’s trend up before settling into a tight chop below Monday’s range. We ended the day with about an two hours of two-way chop.
Heading into today my primary expectation is for sellers to reject an attempt back into Thursday’s range 10514.50 setting up a move down through overnight low 10377.25. Look for buyers down at 10, 342 and two way trade to ensue.
Hypo 2 stronger sellers trade down to 10,300. Look for buyers down at 10,244.75 and two way trade to ensue.
Hypo 3 buyers reclaim Thursday low 10,514.50 the fill the gap up to 10545.50. Look for sellers up at 10,611 and two way trade ensues.
Volume profiles, gaps and measured moves:
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