NASDAQ futures are coming into Friday gap up after an overnight session featuring normal range and volume. Price held yesterday’s range during a slow and balanced Globex session.
On the economic calendar we have Markit Manufacturing PMI at 9:45am and Baker Hughes Rig Count at 1pm.
Yesterday we printed a normal variation down. The sellers became initiative on the day just before the lunch hour. Selling was orderly and located reponsive buyers right around the measured move levels of 4630 (see yesterday morning’s hypo 2).
Heading into today my primary expectation is for sellers to work into the overnight inventory and close the gap down to 4639.25. Look for buyers right around yesterday’s close who work price up through overnight high 4653.75 and test above yesterday’s high 4662.25 which unveils a seller and two way trade ensues.
Hypo 2 sellers work gap fill down to 4639.25 then take out overnight low 4632.75 and continue lower to test Thursday’s low 4626.75. Look for responsive buyers down at 4625 or 4616.75 and two way trade to ensue.
Hypo 3 strong selling pushes down through 4610.75 setting up a move to target the open gap down at 4605.
Hypo 4 strong buying sustains trade above Thursday’s high 4662.25 setting up a move to target 4674.25.
Volume profiles, gaps, and measured moves: