NASDAQ futures are coming into mid-week gap down after an overnight session featuring elevated range on normal volume. Price initially popped higher, post-Apple earnings, before turning lower and pressing down into last week’s highs and catching a bid. At 7am MBA Mortgage applications came in below last week’s reading.
Also on the economic docket today we have crude oil inventories at 10:30am, a 2-Year floating rate note auction at 11:30am, and also a 5-year Note auction at 11:30am.
Yesterday we printed a double distribution trend down. An early 2-way auction gave way to sellers initiating lower prices slowly and methodically.
Heading into today my primary expectation is for buyers to work into the overnight inventory and test Tuesday’s low around 4877 before rolling over and heading lower, down through overnight low 4853 to target the open weekly gap down at 4843.25 before two way trade ensues.
Hypo 2 sellers gap-and-go, push down through overnight low 4853, close gap down at 4843.25 then target the MCVPOC at 4831 before two way trade ensues.
Hypo 3 strong buyers work a full gap fill up to 4888 triggering a pole climb up to 4900 before two way trade ensues.
Levels:
Volume profiles, gaps, and measured moves:
Noticed on twitter you commented on the strong cumulative delta this am, it look to have continued strong while the nq_f reversed on the day, what do you make of that, if anything?