Nasdaq futures were balanced overnight, trading normal range and volume within the upper quad of yesterday’s trend day. At 8:30am initial/continuing jobless claims data came in solid with Claims holding below 300k for the 12th straight week. The initial reaction to the news is muted.
Also on the calendar today we have Pending Home Sales at 10am, Natural Gas Storage figures at 10:30am, and Crude/Distillate inventory at 11am.
Yesterday buyers came in early and put together a trend day. The action was successfully in traversing the entire developing value area. The day prior (Tuesday) we traversed the range in the opposite direction. We managed to take out the lingering naked VPOC at 4543.50, a reference point left behind on 4/27, the day we hit contract high. Price went slightly beyond the reference point before stalling out ahead of contract high.
Heading into today, my expectations for index moves are low. I am looking for action to slow down and grind with a slight upward bias. Look for buyers to sustain trade above overnight low 4531.25 and set up a push to take out overnight high 4543.75 and test above yesterday’s high 4551.
Hypo 2 sellers continue pushing, take out the overnight low 4531.25 and test the LVN at 4520.50. If buyers cannot defend then we continue testing lower target the MCVPOC at 4508.25.
Hypo 3 buyers try a push higher, stall out around 4540, failing to take out overnight high, setup up a move lower to revisit the LVN at 4520.50.