Nasdaq futures are coming into the session up after a slightly abnormal session. Price managed to push well above yesterday’s high and deep into the upper quadrant of Tuesday’s range before finding responsive selling. The session started out a bit soft but by the evening price was grinding higher.
At 8:30am Advance Retail Sales data printed in line with expectations. Initial and Continuing jobless claims data was out at the same time and slightly worse than expected. Also on the agenda today we have Business Inventories at 10am and Natural Gas storage stats at 10:30am.
Yesterday we started out with a big gap down and the day became even bigger. After some fast selling to start the day, selling that pushed down below bracket low, price reversed. By the early afternoon we were neutral and by session end we closed the overnight gap and then some to print a neutral extreme day. This day-type carries the 3rd most directional conviction behind trend day and double distribution trend day. It also left behind a big excess low—event like—something I was looking for this week.
Heading into today my primary hypothesis to see sellers push into the overnight inventory to close the gap down to 4533.25. From there I will look for them to target overnight low 4516 and push to test the 4500 century mark. Look for responsive buyers at 4494.25.
Hypo 2 sellers struggle and fail to close the overnight gap 4533.25 and we continue exploring higher prices. There’s an open gap up at 4565.75 from Tuesday which is likely to attract price. If that closes, look for a continued move up and responsive sellers around 4571.50.
Hypo 3 is blastoff. Take out the Tuesday gap early 4565.75. Press and test above Tuesday’s high 4580, and make haste to 4600.
Levels:
long to 4565 and looking for sellers there
nice