Futures are set to gap up over at the NASDAQ after a balanced session that featured normal range and volume. Price managed to extend higher atop the strong up trend seen Wednesday. At 8:30am Philadelphia Fed data was stronger than expected and Initial/Continuing Jobless claims were worse than expected. The initial reaction is selling.
Also on the economic calendar today we have Leading Indicators at 10am. Energy traders will likely pay close attention to the natural gas storage data at 10:30am as temperatures continue to remain unseasonably warm.
Yesterday we printed a trend day up. Buyers were active ahead of the FOMC minutes, initiating risk, and their campaign continued after the 2pm announcement. The session ended with the market continuing to explore higher prices.
Heading into today my primary expectation is for sellers to push down into the overnight inventory and close the gap down to 4651.50. From there look for a move to take out overnight low 4547.50. Look for responsive buyers around 4641 and two way trade to ensue.
Hypo 2 sellers cannot close the overnight gap. Instead buyers step in at 4654 and work to take out overnight high 4674. From there buyers set their sights on the open gap up at 4702.50 before sellers are found and two way trade ensues.
Hypo 3 the market probes above overnight high 4674 and find little interest. Instead responsive sellers quickly knock price back into range and two way trade ensues that eventually fills the overnight gap down to 4651.50.
Levels:
