NASDAQ futures are coming into Thursday up a quick +80 after an overnight session featuring extreme range on normal volume. Price drifted higher overnight, drifting up beyond the Wednesday high. At 8:30am jobless claims data came out a bit worse than expected but alongside it was Philadelphia Fed data that was much stronger than expected. As we approach cash open price is hovering above the Thursday 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 normal variation up. The day began with a slight gap down down range. After a brief open-test-down, buyers stepped in and resolved the overnight gap. Said buyers then continued higher, taking out the Tuesday high and by New York lunch they had effectively tagged the upper weekly ATR band. It was selling from there onward , with sellers making a hard move down through the daily midpoint and then holding the mid into the close.
Heading into today my primary expectation is for buyers to gap-and-go, probing beyond all-time high 16,448.50 before two way trade ensues.
Hypo 2 stronger buyers tag 16,500.
Hypo 3 sellers reclaim Wednesday high 16,396.50 and then resolve the overnight gap down at 16,302.25 before two way trade ensues.
Volume profiles, gaps and measured moves:
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