NASDAQ futures are coming into Wednesday flat after an overnight session featuring normal range and volume. Price held high balance overnight in slow, two-way trade. At 7am MBA mortgage applications data came out better than last week.
Also on the economic docket today we have crude oil inventories at 10:30am and the US Treasury is auctioning off $24 billion worth of 10-year Notes.
Yesterday we printed a normal variation up. After starting the day gap up to new all-time highs, price drove higher until nearly lunchtime. Then, we formed excess high right around where one would expect to see algorithims hunting stop orders. Sellers pressured the tape for the rest of the afternoon but gained little traction.
Heading into today my primary expectation is for sellers to press down through overnight low 5171.25 and work a gap fill down to 5158. Buyers show up here and two way trade ensues.
Hypo 2 take out overnight high 5187.75 and continue working new highs. Take out Tuesday high 5192 and tag the 5200 century mark before two way trade ensues.
Hypo 3 strong sellers press down to 5138.25 before two way trade ensues.
Levels:
Volume profiles, gaps, and measured moves:
