NASDAQ futures are coming into Wednesday with a slight gap up after an overnight session featuring extreme range and volume. Price was balanced overnight, mostly balancing along the lower half of Tuesday’s range. After briefly probing above the Tuesday mid around 3am, sellers reclaimed the mid around 7am and as we approach cash open price is hovering about -45 points below that mid.
On the economic calendar today we have pending home sales at 10am, crude oil inventories at 10:30am and Fed Chairman Powell set to speak at 11;45am.
Yesterday we printed a double distribution trend down. The day began with a gap down below the prior three sessions’ ranges. After a brief test higher, sellers drove down into the open, sending price on a discovery down into levels unseen since July 21st. The downward auction sort of came to an end around New York lunch, sort of. Three bounce attempts were faded back down to the lows and we ended the day on the lows.
Heading into today my primary expectation is for buyers to press up through overnight high 14,926 setting up a move to 15,000 before chop resumes.
Hypo 2 sellers press into the overnight inventory and close the gap down to 14,758.25. Sellers continue lower, taking out overnight low 14,749 on their way to tagging 14,705.
Hypo 3 stronger sellers liquidate down to 14,600.
Volume profiles, gaps and measured moves:
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