Slow and steady lower overnight, here is the Thursday NASDAQ trading plan

NASDAQ futures are coming into Thursday gap down after an overnight session featuring elevated range and volume.  Price campaigned lower during extended trade, working down near the Wednesday low but ultimately holding prior day range.  At 8:30am Initial/Continuing jobless claims came out below expectations and Philly Fed came out better-than-expected.

Also on the economic agenda today we have leading indicators are 10am followed by a 5-year TIPS auction at 1pm.

Yesterday we printed a normal variation up.  The day began with a slight gap up which was quickly filled, then we continued to drive lower, working back down into the midpoint of Tuesday’s trend up before finding a strong responsive bid and spending the rest of the day auctioning higher.

Heading into today my primary expectation is for buyers to work into the overnight inventory and close the gap up to 6843.  Look for sellers up at 6845.50 and two way trade to ensue.

Hypo 2 stronger buyers work up to 6856.50 before two way trade ensues.

Hypo 3 sellers gap-and-go lower, sustaining trade below 6800 to set up a move down to 6761 before two way trade ensues.

Levels:

Volume profiles, gaps, and measured moves:

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