Nasdaq futures are higher as we head into Wednesday trade after news of sustained QE from the Eurozone sent prices higher. The session features a second sigma range of nearly 40 points on high-end first sigma volume. At 8:30am US Trade Balance data came in a bit stronger than expected, further fueling the strength in the USD/JPY pair.
Also on the docket today we have ISM Non-Manufacturing at 10am and Fed Beige Book at 2pm. Also, the further we press into the week, the more traders will be shifting their attention to Friday’s Non-Farm Payroll data.
Even with the strong overnight action price is still firmly within the intermediate term balance are we have been discussing. Yesterday we printed a normal variation up day after starting out weak. Buyers were unable to press above Monday’s high before sellers came in and faded the action. The question on my mind is whether we’re going to leave this intermediate term range before hearing Friday’s NFP data.
Heading into today, my primary expectation is for some continued strength off the open to take out overnight high 4540.75 and close the open gap up at 4543.25. From here I will look for responsive sellers to enter and push us back toward the 4530 VPOC.
Hypo 2 sellers push into the overnight inventory to test the LVN at 4520.50. If buyer no show then we push down through the pocket to target the NVPOC at 4510 and the overnight gap fill to 4502.75.
Hypo 3 gap and go higher, close the gap up to 4543.25 early and test above last Wednesday’s high 4551 to target a measured move to 4557.
Levels:
