NASDAQ futures are coming into Friday slight gap up after an overnight session featuring normal range and volume. Price was balanced overnight and held inside Thursday’s range. At 8:30am Housing Starts data came in way below expectations.
The only other economic event this week is the Baker Hughes rig count.
Yesterday we printed a neutral day—second one in a row. Price opened gap up, extended higher, 1-ticked swing high (potential failed auction) before traversing down through the entire range, finding a bidder, and returning to the midpoint.
Heading into today my primary expectation is for chop and balance to prevail into the weekend. Sellers work down into the overnight inventory and close the gap down to 4933.75, take out overnight low 4930.75 before finding bidders down around 4920 and two way trade ensues.
Hypo 2 buyers work up through overnight high 4948.25 and make a brief new high, up above 4961.75 before two way trade ensues.
Hypo 3 strong buyers press up through the highs and continue exploring higher prices.
Hypo 4 price sustains trade below 4910 setting up a liquidation down to 4900 then stretch target is 4880.
Levels:
Volume profiles, gaps, and measured moves:
