NASDAQ futures are coming into Friday gap up after an overnight session featuring normal range and volume. Price worked higher overnight, slowly. As we approach cash open price is hovering right at the Thursday midpoint.
On the economic calendar today we have durable goods orders at 8:30am.
At 10am Federal Reserve chairman and private equity advocate Jerome Powell will talk economy and monetary policy. His talk comes on the second day of the three-day Jackson Hole symposium which is hosted by the Kansas City Federal Reserve bank. The topic of the symposium is, “Changing Market Structure and Implications for Monetary Policy”.
Yesterday we printed a neutral extreme down. The day began gap down and with a strong drive higher. Price very briefly went range extension up late-morning before responsive selling stepped in and erased the entire morning buy move. After pushing neutral price worked back to the daily mean, then chopped along it before sellers stepped in late-afternoon to close us in the lower quadrant.
Neutral extreme.
Heading into today my primary expectation is for sellers to work into the overnight inventory and close the gap down to 7424.75. From here we continue lower down through overnight low 7417.50. Look for buyers down at 7400 and two way trade to ensue.
Hypo 2 buyers work up through overnight high 7450.50 setting up a move to test above Thursday high 7475. Look for sellers up at 7481.25 and two way trade to ensue.
Hypo 3 stronger sellers trade us down to 7379.75 before two way trade ensues.
Levels:
Volume profiles, gaps, and measured moves:
