The Nasdaq is trading lower premarket. A few attempts were made to push price higher and each was met with quick reversal, suggesting the early perception of these prices is one of excess.
Trade Balance data was out at 8:30am and served to accelerate the index selling to session low. Also on the agenda today is the ISM Non-Manufacturing index at 10am.
Yesterday we opened gap up and had a strong early drive into last Wednesday’s range before finding sellers. We then spent the rest of the session rotating lower, not quite filling the overnight gap. Sellers did manage to close the range gap however, which likely gave sellers confidence to hold overnight.
Heading into today, my primary expectation is for sellers to continue pushing off the open. Look for buyers around 4450 but if they no show then liquidation down to 4435.50.
Hypo 2 buyers push into the overnight inventory to test up through to 4470 where sellers defend and two-way trade ensues.
Hypo 3 buyers push a full gap fill up to 4476.25 and set up a secondary leg higher to 4490.75. If buyers can take out this level the weak high at 4503.50 becomes a target.
Hypo 4 gap and go drive down, take out 4435 and continue to test 4420.
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this market is wanksta.