NASDAQ future are heading into Friday trade gap up after an overnight session feauting normal range and volume. Price chopped around overnight, briefly trading below the Thursday cash low before traversing the entire range early this morning—mostly after 6am. At 8:30am GDP and Durable Goods orders data were both below expectations.
Also on the economic docket we have the final January reading of U of Michigan Confidence at 10am and the rig count at 1pm.
Yesterday we printed a normal variation down. Price chopped sideways, mostly, after extending all-time highs. At the end of the day sellers spiked onto the tape.
Heading into Friday my primary expectation is for sellers to work into the overnight inventory and close the gap down to 5146.75. Buyers defend around these prices and we work higher, up through overnight high 5160.75 and probe above the Thursday high 5163.25 before two way trade ensues.
Hypo 2 gap and go, take out overnight high 5160.75 early on and sustain trade above Thursday high 5163.25 setting up a week-ending rally.
Hypo 3 sellers close gap down to 5146.75 then take out overnight low 5139.25 setting up a move to target 5131.75 before two way trade ensues.
Levels:
Volume profiles, gaps, and measured moves:
