NASDAQ futures are coming into Wednesday gap up after an overnight session featuring normal range and volume. Price worked higher overnight, briefly poking above the Tuesday high before balancing out. At 8:30am durable goods orders was a solid beat, well above analyst expectations.
Also on the economic calendar today we have pending home sales at 10am, crude oil inventory at 10:30am, a 2-year floating rate auction at 11:30am, and a 5-year note auction at 1pm.
Yesterday we printed a normal variation down. The day began with a gap up and open auction. Then sellers stepped in and worked the gap fill. Sellers continued a touch lower to tag the naked VPOC from Monday before a responsive bid stepped in and two-way trade ensued.
Heading into today my primary expectation is for buyers to gap-and-go up. Look for a move to 5923.25 before two-way trade ensues.
Hypo 2 stronger buyers drive up to close the open gap at 5934.75 then continue to 5937 before two way trade ensues.
Hypo 3 sellers press into the overnight inventory and close the gap down to 5892. Sellers continue lower, down through overnight low 5886.50. Look for buyers ahead of 5883 and two way trade to ensue.
Levels:
Volume profiles, gaps, and measured moves:
