NADAQ futures are priced to gap up heading into Friday.  The overnight session featured a normal range on slightly elevated volume.  Price pushed up into the Thursday liquidation but stalled below the midpoint of yesterday’s big range.  At 8:30am Non-farm payroll data came out stronger than expected while the unemployment rate remained unchanged at 5%.

The only other economic event scheduled today is the Baker Hughes rig count at 1pm.

Yesterday we printed a double distribution trend day down.  This day type has the second highest amount of directional conviction.  The selling accelerated heading into the lunch hour and pressed deep into the 11/18 range before buyers stepped in.  The day ended on a bounce.

Heading into today my primary expectation is for sellers to work into the overnight inventory and close the gap down to 4611.25.  Sellers continue to take out overnight low 4609.75.  Look for responsive buyers at the 4600 century mark and two way trade to ensue below 4625.

Hypo 2 sellers push hard, down throgh 4600 and target 4586.75.  Look for buyers here who are overrun as sellers target the open gap down at 4570.25.

Hypo 3 buyers sustain trade above 4615 setting up a move to take out overnight high 4635.75.  Look for responsive sellers to defend their liquidation at 4643.

Hypo 4 a pole climb.  Buyers push up through 4643, sustain trade above it, and set up a pole climb up to 4676.75.

Levels:

NASDAQ futures are flat up 14 now up 8 points after an extreme session. Both range and volume are beyond second sigma as traders digested a myriad of news items including a 7:38am headline snafu at the Financial Times regarding the ECB rate decision at 7:45am. At 8:30am Initial/Continue jobless claims data was in-line with expectations.

Also on the economic docket today we have a huge 10am log including Factory Orders, ISM Non-manufacturing Composite, and the start of Yellen appearing before the Congressional Joint Economics Committee.

Yesterday we printed a neutral extreme down day. Price briefly went range extension up, by one point, before falling back through the entire range and closing in the lower quadrant. The action managed to make new contract high before rolling over. It also exceeded The low from Tuesday, briefly, before responsive buyers defended. We are seeing another strong defense of these prices again right now as we head into cash open.

Heading into today my primary expectation is for sellers to work into the overnight inventory and close the gap down to 4694.25. Look for buyers to show up here and work up to 4720.

Hypo 2 buyers push up through 4720 to target overnight high 4730.25. Look for responsive sellers at 4736.75 and two way trade to ensue.

Hypo 3 sellers close the gap down to 4694.25 and take out overnight low 4675.25 to close the Monday gap down at 4674.25 before responsive buying and two way trade.

Hypo 4 liquidation takes hold. Take out the Monday gap 4674.25 and target a move down to 4664.50.

Levels:

Futures are flat on the NASDAQ after an overnight session that featured normal volume and range. The Globex session was balanced with price holding up above the high print from yesterday. A wave of selling pushed through around 7am when the Russian defense ministry released evidence of Turkey purchasing ISIS oil. At 7am MBA Mortgage Applications came in better than expected. Same goes for ADP Employment Change which was released at 8:15am.

On the economic docket during the cash session we have crude oil inventory data at 10:30am. Yellen is set to speak at 11am but her testimony takes place tomorrow. I am not sure if today will have much impact on the markets but it is work keeping in mind. We also have the Fed Beige Book at 2pm.

Yesterday we printed a normal variation up day. Price opened gap up and buyers were seen defending the gap. Later in the day aggressive buying managed to close out the session near up at the high.

Heading into today my primary expectation is for sellers to push down and test down to 4703.50. From there look for responsive buyers who make a move on overnight high 4728.75. Just above at 4729.50 is contract high. Look for a push above it to target 4735.50 then two way trade ensues.

Hypo 2 sellers push down through 4700 to target 4693.75. Look for responsive buyers down at 4691.25 and two way trade to ensue below 4710.

Hypo 3 strong buying early, up through 4735.50 and exploration of new highs.

Hypo 4 liquidation takes hold. A push down through 4691.25 sets up a gap fill trade down to 4674.25.

Levels:

Price is set to gap up heading into December after an overnight session featuring normal range and volume.  Soon after the closing bell buyers pressed the market up through the high print set Monday at 4694.75 before the market came into balance.

Today at 10am Construction Spending and ISM Manufacturing data is released.  We also have Fed Evans speaking in on economic policy at 12:45pm.

Yesterday morning sellers stepped in and our week began with selling pressure.  Price pushed about half way down into the range from last Tuesday before responsive buyers stepped in.  The overall print was a normal variation down.

Heading into today my primary expectation is for sellers to push into the overnight inventory and close the gap down to 4674.25.  Look for responsive buyers to make an effort here but be overrun as sellers target overnight low 4671.75.  Buyers defend 4670 and two way trade ensues.

Hypo 2 buyers are active above 4678 and press higher to take out overnight high 4696.50.  Look for a move to test above last Monday high 4706.75 before responsive selling comes in.

Hypo 3 strong selling pushes gap fill 4674.25, take out overnight low 4671.75, then press down to 4660.  Trade is sustained below 4670 setting up a liquidation leg to test below Monday low 4653.50.  Look for responsive buyers at 4647.50.

Levels:

NASDAQ futures are priced to gap up into the week after an overnight session featuring normal range and volume. Price initially worked lower but held the Friday session low before a strong push higher around the Europe open. Heading into cash open price is trading near the high mark set during thin Thanksgiving day trade.

The only economic event of note today is Pending Home Sales at 10am.

Last week price started flat, a small rally rolled over and we saw Monday weakness bleed into Tuesday morning after reports of a Russian military jet being shot down. Price rebounded by the end of the week and overall we essentially traded flat.

Heading into today my primary expectation is for sellers to work into the overnight inventory and close the gap down to 4685.75 before responsive buyers (responsive relative to the open, initiative relative to Friday close) step in and work to take out overnight high 4700.50. Look for a test above 11/23 high 4706.75 before two way trade ensues.

Hypo 2 buyers make a gap and go drive higher, take out 4706.75 early and sustain trade above it, setting up a run for test above contract high 4729.50. Look for responsive sellers up near 4735.50 and two way trade ensues.

Hypo 3 sellers push the gap fill down to 4685.75 then set their sights on 4675.50 VPOC.   Look for responsive buyers near 4672.50.

Levels:

NASDAQ futures are priced to gap up into Black Friday after a globex session that featured normal range on elevated volume.  Price managed to press up into the excess high formed Monday morning before responsive sellers stepped in and pushed price down through the Wednesday cash close.

The economic calendar is clear today, but we do have an early close.  Trade will end at 1:15pm today.

If I could, I would remove the Thursday trade bars from my chart.  They are not actual cash trade since the underlying stocks were not trading.  Wednesday we printed a normal variation up, barely, in a balanced, churn of a session.

Heading into today my primary expectation is for buyers to push up through the overnight high 4703.25, barely, and then two way trade ensues around 4697.

Hypo 2 sellers push into the overnight inventory and close the gap down to 4677.25.  Look for a responsive bid near 4675.75 and two way trade ensues.

Hypo 3 no action.  Churn range between 4697 and 4681.

Levels:

NASDAQ futures are priced to gap up after a Globex session featuring normal range and volume.  Price held the upper quadrant of yesterday’s range before pressing up above the Tuesday high.  We managed to print a weak/double high at 4684.50, which was the overnight high yesterday morning also.  There are a ton of economic events scheduled today.  We already heard MBA Mortgage Applications at 7am.  We also had a data dump at 8:30am which included Personal Consumption Expenditure, Durable Goods, and Initial/Continuing Claims.  The initial reaction is slight selling.

We also have House Price Index at 9am, Markit Composite PMI at 9:45am, both New Homes Sales and the final U of M Confidence read for November at 10am.  Energy traders will also be watching the Baker Hughes Rig Count at 1pm.

Yesterday we printed a neutral extreme up.  Price opened gap down on news a Russian jet was downed by Turkish forces.  After some early buying, a strong wave of liquidation pushed in.  Buyers defended the conviction/trend day printed last Wednesday and the strong buying wave carried price up to close the overnight gap.

Heading into today my primary expectation is for sellers to work into the overnight inventory and close the gap down to 4665.50.  Just below at 4664.75 look for responsive buyers who work to take out the weak overnight high at 4684.50.  Look for responsive selling at 4689.75 and two way trade to ensue.

Hypo 2 buyers gap and go, take out overnight high 4684.50 early.  Look for responsive sellers up at 4694.50 then two way trade ensues, with sellers slowly working the gap fill down to 4665.50.

Hypo 3 sellers accelerate down through the open gap 4665.50 and set their sights on overnight low 4659.50.  Look for a responsive buyer down near 4648 and two way trade ensues.

Levels:

I know you guys just want to read about the latest KBIO bump, but I must share this beauty of a trade that just set up.

Ever since we went neutral this afternoon I have wanted a spot to go short.  When we came into the first level I could work (4677) there was no order flow to lean on.

Then, just in the final throws of the move, a huge order block showed up, was slammed into, and held like a champ.  The rest, as they say, is history, aka 18 handles off the highs.

Thin holiday markets rule:

Focus, fire gun.  All we need is somebody to lean on.

Heading into today, the primary objective was checking back to the price level where participants originally reacted to the Russian plane crash news.  This is one of the fundamentals of futures trading; expect the market to revisit news driven moves.

The NASDAQ lacked market profile structural support where it bounced.  Instead it was buyers asserting themselves and defending the trend day (or conviction day as OA calls it).  The FANG dominated NASDAQ was also divergent from the other indices, and when it bounced it ran hard.

After that happened, the next logical task was going back to 4670.

We are in a neutral print now.  The question is will it end with a standard neutral close near the mid, or will we close neutral EXTREME?

Either way, keep an eye on which areas of the market hold strong.  So far its been small caps.

NASDAQ futures are priced to gap down heading into Tuesday after news the Turks shot down a Russian jet during air combat.  The initial reaction to this news occurred around 3:30am eastern time.  Range on the globex session is elevated as is volume.  Price managed to push down into the slippery single prints left behind last Wednesday before finding buyers.  At 8:30am GDP data came out in-line with expectations while Personal Consumption was a bit lower.

Also on the economic docket today we have the Case-Shiller composite-20 at 9am and more importantly Consumer Confidence at 10am.

Yesterday we printed an efficient normal variation down day.  It was effiecient because it managed to close two open gaps.  First it traded higher to close the 4702.50 gap from 11/6 then it formed excess high and pushed down to close the gap left behind last Thursday at 4659.75.  The session ended with price trading below the mid.

Heading into today my primary expectation is for buyers to push into the overnight inventory and ‘check back’ to 4670, where the reaction to the jet fight happened.  Look for responsive sellers (responsive relative to the open, initiative relative to yesterday close) ahead of the 4676 gap who push to take out overnight low 4634.25.  Look for responsive buyers just below here and two way trade ensues.

Hypo 2 gap-and-go down.  Take out overnight low 4634 early on and sustain trade below it to set up a liquidation down to 4607.

Hypo 3 buyers press the full gap fill up to 4676 then set their sights on overnight high 4684.50 before two way trade ensues.

Hypo 4 sellers take out overnight low 4634.25 early but stall and buyers step in to work back up to scene of crime 4670.

Levels: