NASDAQ futures are starting the morning out gap up after an overnight session featuring normal range and volume. Price worked higher through most of Globex before finding sellers at the same level as yesterday’s Globex session–near Tuesday’s value area high. At 8:30am Initial/Continuing Jobless claims data came out better than expected. The initial reaction is muted. Investors are likely waiting to hear tomorrow morning’s Non-farm Payroll report before reacting, especially with our current auction context (see blog title).
There are no other scheduled economic events today.
Yesterday we printed a normal variation down. A brief attempt at working higher to close the gap down was thwarted when sellers stepped in. Price then worked lower, slowly and methodically, to take out last Friday’s low (swing low) briefly before price was bid back up into our short term balance (see blog title).
Heading into today my primary expectation is for chop. Look for sellers to work into the overnight inventory and close the gap down to 4309.25 before finding responsive buyers and two way trade ensuing south of 4330.
Hypo 2 buyers work higher off the open and close Tuesday gap up at 4335.25. Buyers continue higher and take out overnight high 4342.50. Look for responsive sellers up at 4343 and two way trade to ensue.
Hypo 3 sellers work down through the gap fill, below 4309.25 setting up a move to test the 4300 century mark. Look for two-way trade to ensue
Hypo 4 liquidation snap. Price breaks down through 4300 sending the market down to 4275.75 before two way trade ensues.
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Volume profiles, gaps, and measured moves: