Nasdaq futures are up overnight with the primary thrust occuing just before midnight. However as the US has come online prices have steadily declined and given back about half of the overnight progress. The pullback began around 6am which does not coincide with any economic report or news story but did begin with an overnight failed auction. Price took out the prior overnight high by a few ticks then quickly reversed.
At 8:30am US initial and Continuing Claims were released and both numbers were a bit higher than consensus expectation. The initial reaction in the Nasdaq is light selling.
Volumes picked up yesterday and overnight to the highest levels on the week. Walmart topped earnings forecasts this morning suggesting the US consumer is healthier than analysts expected as we head into the holiday season.
On a daily chart of the Nasdaq futures we can see price has entered a zone where according to measured move analysis there is an expectation of finding sellers. Measured moves are not as dependable as volume profile and prior price action, however they give a sense of where the market might go to run the stop orders of short sellers. The globex market is showing signs of effectively finding sellers, however it is more important to see it show up during regular trading hours. I have noted the above observations and a few more notes on the following daily bar chart:
As a general rule, after three days of movement favorable to your bias, it makes sense to take profits. On the below chart you can see value made a steady three-day progression away from a well-formed intermediate term balance. This morning might be an opportunity to lock in some stretched stock trades you have, especially if they show signs of pause or reversal. This will also free capital to initiate fresh risk, if you choose. I have also noted the very key levels that emerged during yesterday’s session. Note too how cumulative delta (Ask Traded vs Bid Traded) was unable to remain positive yesterday for the first time since 11/5:
primary hypo – resp sellers push into overnight inventory and attempt to renter yesterday’s range 4198.75 to close the gap and test VPOC 4190. Look for signs of resp buyers near the LVN zone 4183.75