NASDAQ futures are coming into Friday gap down after an overnight session featuring extreme range on elevated volume. Price worked lower overnight, down near the weekly low before bidders stepped in and worked price back to the topside of Thursday’s lower quadrant.
The economic calendar is slow today. At 10am we have the preliminary November reading of U. of Michigan confidence and at 1pm the Baker Hughes rig count.
Yesterday we printed a normal variation down. After a gap up and open auction, a strong selling drive pushed into the market and took price to a new low for the week before a strong responsive bid stepped in. The daily mid acted as a wall toward the end of the day, thwarting any attempts at an afternoon ramp higher.
Heading into today my primary expectation is for buyers to work into the overnight inventory and close the gap up to 4743. Price takes out overnight high 4745.75, then look for responsive sellers up at 4750 and two way trade to ensue.
Hypo 2 sellers work down though overnight low 4681.75. Look for responsive buyers down at 4664 and two way trade to ensue.
Hypo 3 strong sellers push down through overnight low 4681.75 and work down to target the weekly gap at 4657.75 before two way trade ensues.
Hypo 4 strong buyers press up to 4800 then 4834.25 before two way trade ensues.
Levels:
Volume profiles, gaps, and measured moves:
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