NASDAQ futures are coming into Wednesday with a slight gap down after an overnight session featuring elevated range and volume. Price was balanced overnight, briefly working lower late Tuesday but not exceeding the Monday low before coming into balance. As we approach cash open, price is hovering just below the Tuesday cash session low.
At 10am we have existing home sales data. At 10:30am crude oil inventories then at 2pm FOMC minutes.
Also note — Jackson hole economic summit begins Thursday and features a talk from Fed Chairman and private equity advocate Jerome Powell.
Yesterday we printed a neutral extreme down. The day began gap up and with buyers driving up-and-away from the Monday range. Buyers stalled just below the gap left behind on 08/14 (last Tuesday) and responsive sellers stepped in. Said sellers became initiative into the close (initiative relative to Tuesday’s open, responsive relative to Monday’s close) and we closed at session low which put us neutral and inside the bottom quadrant.
Neutral extreme.
Heading into today my primary expectation is for buyers to work into the overnight inventory and close the gap up to 7396. Look for sellers up at 7400 and two-way trade to ensue ahead of the FOMC minutes. Then watch for third reaction after the minutes to drive direction into end-of-day.
Hypo 2 sellers work down through overnight low 7352 setting up a move to target 7343.50 before settling into two way trade. Then watch for third reaction after the minutes to drive direction into end-of-day.
Hypo 3 stronger buyers trade up through overnight high 7405.50 setting up a move to target 7429. Then watch for third reaction after the minutes to drive direction into end-of-day.
Levels:
Volume profiles, gaps, and measured moves:
