Nasdaq futures were on the move overnight, traversing over 70 points worth of range on the session. Volume on the action pushed beyond second sigma further emphasizing the extreme nature of the session. Price spent most of the evening pushing lower before finding buyers who held yesterday’s session low.
Coming up at 2pm we will hear minutes from the FOMC’s June 16-17 meeting. This is likely to be a high impact event. The economic calendar is otherwise quiet on the day.
Turning to the charts, the last few days have formed intermediate term balance. Price action has been overlapping since 6/29, two Monday’s back, when the market began being jittery about Greece. A clear low volume pivot point has formed right at 4402.50. You can see it on the volume profile chart to your left:
Yesterday we printed a neutral extreme. Price worked lower and tested the low set during globex Sunday night at 4340. Just below it buyers could be seen defending. Said buyers then worked back through the entire session range to print a close near the daily high.
Heading into today, my primary expectation is for buyers to push into the overnight inventory and test above 4402.50. Look for them to sustain above this price and work the gap fill up to 4422.50. Look for sellers around 4439.25 and two-way trade to ensue.
Hypo 2 sellers push off the open to 4357.25, buyers defend, and two way trade ensues as we await the FOMC minutes.
Hypo 3 is a fast push lower, gap-and-go down. Sellers sustain below 4358 setting up a move below yesterday’s low 4334.50. Caution bulls especially if we trade below 4320.
Levels:
good analysis
thanks
so0o0o0o0o0o0o anything can happen?
yes, but how exactly the “anything” transpires is my specialty. See hypo 2.