NASDAQ futures are coming into Friday gap down after an overnight session featuring normal range and volume. Price briefly exceeded Thursday’s high before settling into balance.
The economic calendar is light today. Baker Hughes rig count at 1pm, that’s it.
Yesterday we printed a neutral extreme up. A volatile first hour of trade eventually extended lower. The lower prices found a strong responsive bid right around the MCVPOC at 4800. Then, at the end of the day when Microsoft reported earnings, we thrusted higher, during settlement, putting us into a neutral extreme print.
Heading into today my primary expectation is for buyers to work into the overnight inventory and close the gap up to 4844.25. Then look for a move to take out overnight high 4849 and probe above the Wednesday high 4856.75. Look for sellers up at 4861.25 and two way trade to ensue.
Hypo 2 sellers push down through overnight low 4832.25 and work down to 4796.75 before finding a responsive bid and settling into two way trade.
Hypo 3 strong selling pushes down to 4780.50 before two way trade ensues.
Volume profiles, gaps, and measured moves: