NASDAQ futures are coming into Wednesday gap up after an overnight session featuring extreme range on elevated volume. Price steadily ascended higher overnight, trading back to nearly where prices were Tuesday morning. At 8:15am ADP employment data came out slightly below expectations, and as we approach cash open price is hovering in the upper quadrant of Tuesday’s range.
Also on the economic calendar today we have ISM services at 10am followed by crude oil inventories at 10:30am.
Yesterday we printed a double distribution trend down. The day began with a pro gap down and then an open-test-drive down. Sellers drove lower until about noon. Then the rest of the session was spent steadily retracing higher. We eventually closed at the daily midpoint. Of note—the VPOC never shifted up off the lowest distribution.
Heading into today my primary expectation is for sellers to work into the overnight inventory and close the gap down to 13,519.50. Look for buyers just below at 13,500 and for two way trade to ensue.
Hypo 2 stronger sellers take out Tuesday low 13,380.75 setting up a move to 13,337.
Hypo 3 buyers push through overnight high 13,653.25 and tag 13,700.
Levels:
Volume profiles, gaps and measured moves:
