NASDAQ futures are coming into Thursday flat-ish/gap up after an overnight session featuring normal range and volume. Price held yesterday’s upper quadrant while slightly extending price to new highs. At 8:30am the Philadelphia Fed reading was well-below expectations and Initial/Continuing Jobless claims data was better than expected.
Also on the economic docket today we have Existing Home Sales and Leading Indicators at 10am and a 10-year TIPS auction at 1pm. Today is also packed with earnings, the most reports this week. All this combined may introduce some volatility into the market.
Yesterday we printed a short-squeeze profile. They look like a capital letter-P. It was nearly a trend day but fell off the highs near the end of the session.
Heading into today my primary expectation is for buyers to continue working price higher, up through overnight high 4661.50. Look for responsive sellers up near 4674.25 and two-way trade to ensue.
Hypo 2 sellers work down through overnight low 4643 and test 4630.50 before settling into two way trade.
Hypo 3 strong sellers sustain trade below 4630.50 trigger a liquidation which probes below yesterday’s low 4615.50 and find responsive buyers just below at 4611 before two-way trade ensues.
Volume profiles, gaps, and measured moves: