NASDAQ future are coming into Wednesday, March 1st gap up after an overnight session featuring elevated volume on normal range. Price held the Tuesday mid, then just after midnight rallied hard and to new highs. At 7am MBA mortgage applications came in well above last week, and at 8:30am Personal Spending data was mixed.
Also on the economic docket today we have ISM Manufacturing and Construction spending at 10am, crude oil inventories at 10:30am, and the Fed’s Beige Book at 2pm.
Yesterday we printed a double distribution trend down. Sellers emerged shortly after the open, then became initiate during the New York lunch hour. Price worked down to about Monday’s midpoint before responsive buyers emerged and two way trade ensued.
Heading into today my primary expectation is for a squeeze up through overnight high 5369.50 to tag 5375 before two way trade ensues.
Hypo 2 buyers sustain trade above 5375 setting up a trend up.
Hypo 3 seller work into the overnight inventory, down to 5350 before two way trade ensues.
Hypo 4 sellers push a full gap fill down to 5332 before two way trade ensues.
Volume profiles, gaps, and measured moves: