NASDAQ futures are coming into Wednesday gap down after an overnight session featuring extreme volume and range. Price was balanced overnight, churning in the lower quadrant of Tuesday’s trend down.
The economic calendar is light today. At 10:30am crude oil inventory, 11:30am the US Treasury will auction off 2-year floating rate Notes, and at 1pm 5-year Notes.
Be aware Facebook reports after market close. This is a NASDAQ mover.
Yesterday we printed a trend down. The day began gap up and sellers quickly drove the gap closed. Then sellers continued driving lower most of the session, closing a gap from 4/9 along the way, coming into slight balance late in the day.
Heading into today my primary expectation is for sellers to gap-and-go lower, down through overnight low 6475.50 and closing the 4/6 gap down at 6451.50 before two way trade ensues.
Hypo 2 buyers work into the overnight inventory and close the gap up to 6525 then continue higher up through overnight high 6538.75. Look for sellers up at at 6562.25 and two way trade to ensue.
Hypo 3 stronger sellers press a move down to 6400 before two way trade.
Levels:
Volume profiles, gaps, and measured moves:
