NASDAQ futures are coming into Thursday gap up after an overnight session featuring normal range and volume. Price balanced overnight and held the upper quadrant of Wednesday’s trend up. At 7:45am the ECB announced a tapering of their bond purchases to €60 billion. The news sent the NASDAQ into a 10-point gyration best resembling a ping pong match (no Comet).
At 8:30am Initial/Continuing jobless claims data was slightly better than expected.
There are no other economic events on the docket today.
Yesterday the NASDAQ formed a trend up. A morning attempt lower, testing just below the Tuesday low, revealed a strong responsive bid. Buyers then became initiative for the rest of the session working up and above the open gap left behind at the end of November.
Heading into today my primary expectation is for a move up through overnight high 4854. Sellers defend just above at 4857.25 and two way trade ensues.
Hypo 2 stronger buyers work up to 4871.50 before two way trade ensues.
Hypo 3 seller push down through overnight low 4836 triggering and test down to 4827.50 before two way trade ensues.
Hypo 4 strong selling pushes down to 4800 then 4789.25 before two way trade ensues.
Levels:
Volume profiles, gaps, and measured moves:
