NASDAQ gap up, recovering some selling seen after Jerome talked to Congress, here is your month-end trading plan

NASDAQ futures are coming into Wednesday gap up after an overnight session featuring elevated range on extreme volume.  Price made a new weekly low overnight before discovering a bid and trading back near the Tuesday midpoint.  At 8:30am GDP data came out better than expected.

Also on the economic docket today we have pending home sales at 10am and crude oil inventory and 10:30am.

Yesterday we printed a double distribution trend down.  The day began with a violent two-way auction which eventually gave way to selling once the world heard Jerome Powell speak to Congress for the first time.  The selling continued, methodically, right down to the open gap left behind from last Friday—down at 6909.

Heading into today my primary expectation is for sellers to work into the overnight inventory and close the gap down to 6917.50.  From here sellers continue lower, down below overnight low 6893.25.  Look for buyers just below at 6890.50 and two way trade to ensue.

Hypo 2 buyers gap-and-go up through overnight high 6945.75 and continue higher, up to 6977 before two way trade ensues.

Hypo 3 stronger buyers trade up to 7000 before two way trade ensues.

Levels:

Volume profiles, gaps, and measured moves:

 

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