For the first time this week the overnight session is coming in with volume and range below extreme 3rd sigma. The session was balanced overall with a clear pivot at 4307. Price managed to take out Thursday’s high briefly before rolling back down into two way trade. At 8:30am Personal Consumption/Expenditure stats were out and the initial reaction has been slight selling.
Also up for release today we have the final August read of U of M Confidence and at 1pom the Baker Hughes Rig Count.
Yesterday price opened gap up, out of range from Wednesday. An early short squeeze transitioned into initiative buying before sellers came in and pushed price neutral. At the end of the day buyers ramped back up, fading the second range extension.
Heading into today, my primary expectation is for buyers to work into the overnight inventory to close the overnight gap up to 4329.50. From there look for buyers to take out overnight high 4340.75 then struggle and ultimately roll over at 4349 before two-way summer Friday trade ensues.
Hypo 2 sellers keep price south of the overnight 4307 pivot setting up a leg lower to take out overnight low 4281.75. Look for sellers to target Wednesday’s open gap 4211.25.
Hypo 3 a more muted session, contained within yesterday’s range. Two-way chop fest.