NASDAQ futures are coming into Wednesday with a gap down after an overnight session featuring normal range and volume. Price worked slightly lower overnight, ultimately balancing inside of the Tuesday range during extended trade. At 8:30am Durable Goods orders came out better than expected.
Also on the economic docket today we have house price index at 9am, new home sales at 10am, crude oil at 10:30am, a 2-year note auction at 11:30am, and a 5-year note auction at 1pm.
Yesterday we printed a normal variation up. The day began with a gap up that was quickly faded. After closing the gap and briefly probing below the overnight low, a strong bid stepped in, reversed all the morning selling, and two way trade ensued.
Heading into today my primary expectation is for buyers to work into the overnight inventory and close the gap up to 6079. From here we continue higher, up through overnight high 6081. Look for sellers up at 6098 and two way trade to ensue.
Hypo 2 sellers press down through overnight low 606.75 setting up a liquidation down to 6021.25 before two way trade ensues.
Hypo 3 stronger buyers press up to 6119.75 before two way trade ensues.
Levels:
Volume profiles, gaps, and measured moves:
