NASDAQ futures are coming into Thursday gap down after an overnight session featuring normal range and volume. Price worked down through the Wednesday low, with selling stalling out just 1-tick ahead of the Tuesday close before buyers stepped in and balanced price out. At 7am the Bank of England left their benchmark interest rate unchanged.
At 8:30am we will hear the Initial/Continuing jobless claims data, however investors are likely more keen to hear Friday morning’s Non-Farm Payroll data.
Amazon is also set to report earnings after market close.
Yesterday we printed a normal variation down. After opening gap up sellers worked into the morning tape, pressing us down to Monday’s close 5123.75 and filling that gap. Buyers were just 1 tick below and began working price higher. They did not manage to work us into a neutral print, but did regain much of the intra-day selling by the close.
Heading into today my primary expectation is for sellers to press down through overnight low 5119.50 and continue lower, down to 5110.75 before two way trade ensues.
Hypo 2 buyers press into the overnight inventory and close the gap up to 5147.75. From here we continue higher, up through overnight high 5153.25. Look for sellers up at 5153.50 and two way trade to ensue.
Hypo 3 stronger buyers press the weekly gap fill up to 5162 before two way trade ensues.
Volume profiles, gaps, and measured moves: