I turn dials and fiddle with knobs to hone in on harmonic rotations
Joined Oct 26, 2011
4,093 Blog Posts

NASDAQ extends Fed gains // here is Thursday trading plan

NASDAQ futures are coming into Thursday gap up after an overnight session featuring extreme range and volume. Price was balanced overnight, balancing along the upper quadrant of Wednesday’s range until about 3:30am when buyers pressed up beyond the Wednesday range and briefly trade back up into last week’s low. Since then price has drifted lower. Then at 8:30am jobless claims data came out lower than expected and as we approach cash open price is hovering up beyond the Wednesday high.

Also on the economic calendar today we have 4- and 8-week T-bill auctions at 11:30am followed by a 10-year TIPS auction at 1pm.

Yesterday we printed a double distribution trend up. The day began with a slight gap up in range. Sellers made a quick move on the open to resolve the gap but were met by strong responsive buyers before they could do so. Said buyers managed to work price up through the Monday/Tuesday highs and tag the 15,200 century mark. Then we drifted back to the daily midpoint and awaited the FOMC announcement.

The Feds left their benchmark borrowing rate unchanged but opened the door for a rate hike at the next meeting. Here are some other key take aways from the announcement:


Third reaction to the information was up. And after making a new daily high price spiked back down to the daily mid. Buyers held the mid and we ended the day in the upper quadrant.

Heading into today my primary expectation is for buyers to reject a move back into Wednesday high 15,227 setting up a move up through overnight high 15,310. Look for sellers up at 15,344.50 and for two way trade to ensue.

Hypo 2 sellers recapture Wednesday high 15,227 and sustain trade below it setting up a move down through overnight low 15,165.25. Look for buyers just below at 15,150 and for two way trade to ensue.

Hypo 3 stronger sellers work to resolve the Tuesday gap down at 14,982.50 before two way trade ensues.


Volume profiles, gaps and measured moves:

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