Nasdaq futures are flat heading into cash open here in the USA. The session featured a slightly elevated range taking place on a normal amount of volume. Price managed to briefly test below yesterday’s RTH low before reversing and thrusting higher to put us back to unchanged.
At 8:30am Non-Farm payroll data came in just a touch lower than expectations but when paired with revisions it has solidified many a pundits view that The Fed will raise rates (liftoff) in September. Also on the docket today we have the Baker Hughes Rig Count at 1pm and Consumer Credit at 3p,.
Yesterday we printed what looked like a trend day down. It looked like this until New York lunchtime when other timeframe (OTF) participation turned off and 2-way (local) trade ensued. Despite my best attempt to label yesterday’s profile print within the confines of Mind Over Market logic, it makes sense to keep an open mind that not every instance in life can be labeled. Thus, it was a trend day that morphed into a long tailed lowercase letter-b, aka liquidation, a temporary phenomenon.
Heading into today, my primary expectation is for bulls to attempt the pole climb. They will first need to target and exceed overnight high 4533.75. From there they aren’t likely to find much resistance until way up at 4587.50.
Hypo 2 is buyers struggle and cannot take out overnight high 4533.75 and we roll over and continue probing lower. The book is thick around 4513 but if bears can push down through here I will be looking to target the 7/13 open gap down at 4487.50.
Hypo 3 the morning excitement fizzles into typical summer Friday trade and a 2 way grind takes hold between 4550 and 4510.
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