NASDAQ futures are coming into Thursday gap up after an overnight session featuring elevated range on normal volume. Price shot higher just after midnight and continued to rally aggressively up until about 6am when sellers stepped in just above 4600. At 8:30am Initial/Continuing jobless claims data was mixed.
There are no other economic events scheduled for today.
Yesterday we printed a neutral extreme down. This came on the heels of Tuesday’s normal day. Therefore we had two consecutive uncommon prints and yesterday’s suggested lower prices heading into today. With that expectation, short sellers are likely being caught off-guard by the overnight strength.
Heading into today my primary expectation is for buyers to squeeze higher off the open and test 4600. Expect indecisiveness here, but the longer we linger at it the more likely we take out overnight high 4608.25. Look for responsive sellers up at 4621.25 and two way trade to ensue.
Hypo 2 sellers push into the overnight inventory and test back into yesterday’s range 4583.50. Look for responsive buyers just below, down at 4577.75 and two way trade to ensue, slowly working higher to take out overnight high 4608.25 by end-of-day.
Hypo 3 strong sellers push into overnight inventory, pressing us back into yesterday’s range 4583.50 and sustaining trade below 4577.75 triggering a quick move down through the ‘air pocket’ [see Market Profile chart below] and filling the gap down at 4561. Sellers continue lower and take out overnight low 4553.50. Look for responsive buyers down at 4548.50 and two way trade to ensue.
Levels:
Volume profiles, gaps, and measured moves:
Penny finale…..so unfulfilling 🙁