NASDAQ futures are coming into Thursday gap down after an overnight session featuring extreme range and volume. Price worked lower overnight, unidirectional rotating down through the majority of Wednesday’s range, but staying within the cash range. As we approach cash open, price is hovering in the lower quadrant of Thursday’s range.

On the economic calendar today we have durable goods and factory orders at 10am and 4- and 8-week T-bill auctions at 11:30am.

Major retailer Costco is set to report earnings after the bell.

Yesterday we printed a double distribution trend up. The day began with a gap up and two way auction. Sellers were unable to close the overnight gap before buyers stepped in and worked price higher. Said buyers tagged the Tuesday nVPOC then chopped along the midpoint until early afternoon when price squeezed higher. This move had some follow thru late in the day, but we ended up printing an inside day, with the entire range staying inside of Tuesday’s range. We ended near session high.

Heading into today my primary expectation is for sellers to gap-and-go lower, trading down to close the gap at 8581.25 before two way trade ensues.

Hypo 2 buyers work into the overnight inventory and close the gap up to 8895 then continue higher, up through overnight high 8909.75. Look for sellers just above at 8921 and two way trade ensues.

Hypo 3 stronger buyers set up a move to 9000.

Levels:

Volume profiles, gaps and measured moves:

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NASDAQ future are coming into Wednesday gap up after an overnight session featuring extreme range and volume. Price worked higher overnight after briefly poking below the Tuesday cash low by a few ticks. This failed auction set the stage for prices to work higher all night, eventually probing a big beyond the Tuesday midpoint. As we approach cash open, price is hovering along the Tuesday mid.

On the economic calendar today we have ISM-non manufacturing/services composite at 10am, crude oil inventories at 10:30am and beige book at 2pm.

Super Tuesday saw Democratic contenders Bernie Sanders and Joe Biden split most of the vote.

Yesterday we printed double distribution trend down. The day began with a gap up that sellers quickly resolved with a open drive lower. Sellers struggled to reclaim Monday’s value area high, a double top print, ushering in buyers who drove price up to 9000. This all happened in the first hour of trade. We then formed a sharp excess low and went range extension down. After a checkback to the daily midpoint, price again rotated lower, eventually dipping down into the lower quadrant of Monday’s range. Buyers were active throughout the rotation but we ended near session low.

Heading into today my primary expectation is for seller to work into the overnight inventory but cannot close the overnight gap. Instead buyers step in around 8624 and work higher, trading up through overnight high 8809. Look for sellers up at 8888 and two way trade to ensue.

Hypo 2 sellers work a full gap fill down to 8581.25, setting up a move down through overnight low 8508.25. Look for buyers down at 8500 and two way trade to ensue.

Hypo 3 gap and go higher, trading up through 8888 and sustaining trade above it, setting up another run to 9000.

Levels:

Volume profiles, gaps, and measured moves:

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NASDAQ futures are coming into Tuesday with a slight gap up after an overnight session featuring extreme range and volume. Price was balanced overnight, chopping along the upper quadrant of Monday’s range. Buyers briefly exceeded the Monday high around 3:30am before traders demonstrated dissatisfaction with the G7 finance minister’s decision to hold off on any fiscal easing today in the wake of coronavirus fears. Their verbiage was dovish, but no action taken. This was met with price slipping back to the Globex session’s midpoint.

There are no other economic events today. Today is Super Tuesday and we can expect some political noise throughout the day.

Yesterday the NASDAQ printed a double distribution trend up. The day began with a slight gap up that sellers were able to resolve during an opening two-way auction. Said sellers were rejected away from the Friday range early on. We formed IB low around 10:30am New York and then worked higher, trading up through last Thursday’s midpoint, right up the the weekly ATR band. Price formed a double top here, then retraced back to the midpoint before a second wave of buying rolled in, taking us to a new high of day and right back to the price level we were at when news of the U.S. airstrike on Iran hit the wires several weeks ago. Some of that late afternoon buying was given back during settlement but the day ended in the upper quadrant of range.

Heading into today my primary expectation is for buyers to gap-and-go higher, trading up through overnight high 8917.50. Look for sellers up at 8948.25 and two way trade to ensue.

Hypo 2 sellers work into the overnight inventory and close the gap down to 8785.25 then continue lower, down through overnight low 8738.50. Look for buyers down at 8700 and two way trade to ensue.

Hypo 3 stronger buyers sustain trade above 8948.25 setting up a move to 9000.

Levels:

Volume profiles, gaps, and measured moves:

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NASDAQ futures are coming into Monday flat after an overnight session featuring extreme (off the charts) range and volume. The globex session began with a gap down that had price near Friday’s midpoint. From there sellers worked a touch lower before discovering a strong responsive bid. This formed an excess low before buyers went to work resolving the Sunday gap. Price then continued higher, trading up through the Friday high and more, eventually working up beyond the Thursday midpoint before finding sellers. Said sellers erased the gains back to the Friday close (unchanged). As we approach cash open, price is about 90 points higher than the Friday close and moving fast.

On the economic calendar today we have ISM employment at 10am, 13- and 26-week T-bill auctions at 11:30am. Also be aware that Berkshire Hathaway reports earnings after the bell.  These earnings could move the whole market.

Last week began with a gap down and saw selling all week. Full on risk off, with investors rotating away from equities. Friday morning markets caught a bid and went into the weekend with a choppy balance, off the lows. The last week performance of each major index is shown below:

On Friday the NASDAQ printed a normal variation up. The day began with a gap down and two way auction, with price trading down to levels unseen since November 1st. Sellers could not however take out the November first low before buyers stepped in. Buyers then became initiative (initiative relative to Friday open, responsive relative to Thursday close) closing the overnight gap and trading up into Thursday’s lower quadrant before settling into a big chop along the daily midpoint. Late int he session price ramped to a new high of day and closed there.

Heading into today my primary expectation is for buyers to gap and go higher, trading up through overnight high 8677.25. Look for sellers up at 8715.75 and two way trade to ensue.

Hypo 2 stronger buyers trade up to the open gap at 8847.75 before two way trade ensues.

Hypo 3 sellers press into the overnight inventory and close the gap down to 8505. From here sellers continue lower, down through overnight low 8224.25. Look for buyers down at 8089.50 and two way trade to ensue.

Levels:

Volume profiles, gaps, and measured moves:

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NASDAQ futures are coming into Friday gap down after an overnight session featuring extreme range and volume. Price was balanced overnight, chopping briefly to a new all-time high during globex trade before settling into balance above Thursday’s midpoint. At 8:30am Nonfarm payroll data came out stronger-than-expected, expand the following tweet to see more info on the job’s report:

BREAKING: HUGE BEAT

*U.S. JAN. PAYROLLS RISE 225,000 M/M; EST. 165,000https://t.co/eohRBekV46

— Joe Weisenthal (@TheStalwart) February 7, 2020

As we approach cash open, price is hovering just above the Thursday midpoint.

On the economic calendar today we have the Fed releasing their semi-annual monetary policy report to Congress at 11am followed by consumer credit at 3pm.

Yesterday we printed a double distribution trend up. The day began with a slight gap up that sellers quickly resolved during the opening auction. From then-on buyers were in control, working price up near all-time highs before settling into a tight balance along the high. We ramped up near end-of-day but stopped a few points shy of new highs.

Heading into today my primary expectation is for buyers to work into the overnight inventory and close the gap up to 9454.75. From here we continue higher, up through overnight high 9471, setting up a move to tag 9500 before two way trade ensues.

Hypo 2 sellers work down through overnight low 9395. Look for buyers down at 9379.50 and two way trade to ensue.

Hypo 3 stronger sellers trade down to 9341.50 before two way trade ensues.

Levels:

Volume profiles, gaps, and measured moves:

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NASDAQ futures are coming into Thursday gap up after an overnight session featuring extreme range and volume. Price worked higher overnight, coming to within a few tick of record highs (but not exceeding them) before falling into a tight balance along the highs. At 8:30am initial/continuing jobless claims data came out mixed. As we approach cash open, price is hovering in the upper quadrant of Wednesday’s range.

The only other economic events today are 4- and 8-weekT-bill auctions at 11:30am.

Yesterday we printed a normal variation down. The day began with a pro gap up to new all-time highs. Then an open drive down send price careening lower, pausing briefly to chop around 9400 before continuing lower to close the overnight pro gap. Sellers continued a bit lower before finding responsive buyers near Tuesday’s NVPOC. It was choppy from here, with buyers eventually ramping price back up to the daily midpoint. We ended the session just below the mid.

Heading into today my primary expectation is for sellers to work into the overnight inventory and close the gap down to 9383.25. From here we continue lower, taking out overnight low 9375 before two way trade ensues.

Hypo 2 stronger sellers trade down to 9342 before two way trade ensues.

Hypo three buyers gap-and-go higher, defending 9400 before working up through overnight high 9460, setting up a move to 9500.

Levels:

Volume profiles, gaps, and measured moves:

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NASDAQ futures are coming into Wednesday pro gap up, a second pro gap in a row, after an overnight session featuring extreme range and volume. Price was balanced overnight until about 3:30am New York when some news of a coronavirus cure spiked price higher. Since then, there was a bit of a balance around 9420 and as we approach cash open, price is hovering at record highs, up beyond 9450.

On the economic calendar today we have ISM Non-Manufacturing/Services composite at 10am followed by crude oil inventories at 10:30am.

Yesterday we printed a trend up. The day began with a gap up and two-way auction before buyers stepped in and methodically discovered higher prices. After taking out the 9300 century mark the auction tightened up and balanced for a bit before continuing higher and ended near high of day.

Heading into today my primary expectation is for the higher timeframe to be active. We are out of balance. Primary hypo is for buyers to gap-and-go higher, working up to tag the 9500 century mark before two way trade ensues.

Hypo 2 sellers work into the overnight inventory and check back to that 3:30am news, working down to 9353.75 before two way trade ensues.

Hypo 3 stronger sellers trade down to 9326.25 before two way trade ensues.

Levels:

Volume profiles, gaps, and measured moves:

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NASDAQ futures are coming into Tuesday pro gap up after an overnight session featuring extreme range and volume. Price was trend up overnight, after a brief bout of selling following weaker-than-expected sales from Google parent Alphabet, Inc:

Alphabet Q4 EPS $15.35 Beats $12.53 Estimate, Sales $46.075B Miss $46.94B Estimate

 

Google earning sent price about 30 points lower during settlement, but that was all the control sellers would have for the rest of the Globex session. From then onward, price was trend up, forming one short squeeze after another, methodically migrating price back up near all-time highs. Around 7am the World Health Organization declared that were are not in a pandemic with Coronoavirus. This news was greeted with an additional wave higher in prices. As we approach cash open, price is about 30 points off of all-time highs.

On the economic calendar today we have durable goods and factory orders at 10am.

There are no major earnings due out for the rest of the week.

Yesterday we printed a normal variation up, short-squeeze. The day began with a gap up and drive higher, with buyers driving price up beyond our weekly measured move ATR band 9131.75. This right away suggested that something big might be going on, with the higher timeframe active. Shortly after the first hour of trade we went range extension up for a few minutes before we settled into a tight chop along the upper quadrant for the duration of the session. Late in the day we fell back into the midpoint. The action served to printed a p-shaped market profile, which suggests a short squeeze occured. These are often short-term phenomena, however with the upward action seen overnight, it appears to be more that that.

Heading into today we are way out of balance. Expect the higher time frame to duke it out for the first hour or so. Primary hypo is for buyers to gap-and-go higher, trading up to 9280 before two way trade ensues.

Hypo 2 stronger buyers sustain trade above 9280 and make a run for 9300.

Hypo 3 sellers work into the overnight inventory and tag the odd open gap at 9218.75 before two way trade ensues.

Hypo 4 some kind of liquidation takes hold, ripping down through 9200, pausing briefly at 9172.50 before continuing lower, effectively erasing the overnight gains and closing the gap down to 9113.75 on our way to taking out overnight low 9073. Look for buyers down at 9088 and two way trade to ensue.

Levels:

Volume profiles, gaps, and measured moves:

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NASDAQ futures are coming into Monday gap up after an overnight session featuring extreme range and volume. Price chopped higher overnight, trading up beyond last Friday’s midpoint by about 15 point before coming into balance. As we approach cash open, price is hovering about 15 point below the Friday mid.

On the economic calendar today we have ISM employment/manufacturing at 10am followed by 13- and 26-week T-bill auctions at 11:30am.

Major NASDAQ component and Google parent Alphabet, Inc is set to report earnings after the bell.

Last week kicked off with a gap down. We spent half the week reversing it, eventually doing so Wednesday morning. Thursday ended strong before a gap down Friday kicked off a trend down into the weekend. The last week performance of each index is shown below:

On Friday the NASDAQ printed a trend down. The day began with a gap down in range followed by a drive lower. Sellers worked down below the Thursday low before a bit of a bid stepped in. Said bid was overrun shortly after New York lunch. We ended the session with a big of a ramp higher, ramping ahead of the open gap left behind Monday.

Heading into today my primary expectation is for buyers to gap-and-go higher, trading up through overnight high 9092.25 to tag 9100. Look for sellers ahead of 9111 and two way trade to ensue.

Hypo 2 sellers work into the overnight inventory and close the gap down to 9016.25 setting up a move down through overnight low 8975. Look for buyers down at 8958.25 and two way trade to ensue.

Hypo 3 stronger sellers trade down to 8900.75 before two way trade ensues.

Levels:

Volume profiles, gaps, and measured moves:

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NASDAQ futures are coming into Friday gap down after an overnight session featuring extreme range and volume. Price worked lower overnight, trading down near the per-Amazon earnings spike before coming into balance. At 8:30am PCE core data came out in-line with expectations. As we approach cash open, price is hovering below 9200, about -50 points off the overnight high.

On the economic calendar today we have Chicago purchasing manager at 9:45am followed by the final January reading of sentiment from the University of Michigan.

Yesterday we printed a neutral extreme up. The day began with a gap down that buyers quickly resolved with an open drive up. After closing the gap and trading a few points beyond 9100,responsive sellers stepped in and reversed the morning gains and more, going range extension down and pressing deep into Tuesday’s conviction buy range. Then as the late afternoon progressed, bidders stepped back in, reclaiming the midpoint then defending it around 3pm before rallying price to a new high of day, pushing us neutral. Amazon earnings then propelled a sharp move higher, trading up beyond last Friday’s midpoint during before the settlement period ended. We closed near the high.

Neutral extreme up.

Heading into today my primary expectation is for sellers to be actively defending 9200, taking out overnight low 9138 to set up a move down to 9100. Look for buyers down at 9086 and two way trade to ensue.

Hypo 2 buyers work into the overnight inventory and trade up through overnight high 9248.75. Look for sellers up at 9257.25 and two way trade to ensue.

Hypo 3 stronger buyers trade up to 9280.25 before two way trade ensues.

Levels:

Volume profiles, gaps, and measured moves:

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