NASDAQ futures are coming into Wednesday with a slight gap up after an overnight session featuring extreme range and volume. Price was fairly balanced overnight, bouncing along the weekly lows a two-ticking below them briefly before a little 3:30am rally saw price decidedly return to the Tuesday midpoint. At 8:30am CPI data came out in-line with expectations. As we approach cash open price is hovering along the Tuesday midpoint.
Also on the economic calendar today we have a 30-year bond auction at 1pm. Then at 2pm we have a Treasury statement along with the FOMC minutes.
Yesterday we printed a normal variation down. The day began with a gap up in range. Sellers quickly resolved the overnight gap and then took out the Monday low. Sellers held the mid for the rest of the session and we chopped below it until settlement period when sellers pressed price back down to the lows.
Heading into today my primary expectation is for buyers press up to 14,800 before two way trade ensues.
Hypo 2 sellers work into the overnight inventory and close the gap down to 14,613.50. This sets up a move down through the overnight low 14,586 before two way trade ensues.
Hypo 3 stronger sellers liquidate down to 14,500.
Levels:
Volume profiles, gaps and measured moves:
