NASDAQ futures are coming into Friday gap up after an overnight session featuring normal range and volume. Price worked higher overnight in the same manner it ascended since about 11am Thursday—a slow, steady, churn higher. At 8:30am Advance Retail Sales came in below expectations.
Also on the economic docket today we have Business Inventories at 10am, the preliminary January reading of U. of Michigan confidence at 10am, and the Baker Hughes rig count at 1pm.
Yesterday we formed the second consecutive neutral extreme up. After starting the day gap down sellers drove lower, pressing down around the 5000 century mark before a bid stepped in. WE then spent the rest of the day algorithmically grinding higher. Interesting note, value never shifted higher on the day, instead remaining down in the lower quardrant.
Heading into today my primary expectation is for sellers to work into the overnight inventory and close the gap down to 5035.25. This sets up a move down through overnight low 5034. Look for bidders around 5015 and two way trade to ensue.
Hypo 2 we press up and close the Thursday gap at 5046.50 then continue higher, up to 5054 before two way trade ensues.
Hypo 3 a short squeeze takes hold after we sustain trade above 5058 and we trend higher into the weekend.
Levels:
Volume profiles, gaps, and measured moves:
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