NASDAQ futures are coming into Thursday flat after an overnight session featuring extreme range on normal volume. Price was balanced overnight, hovering along the bottom quadrant of Wednesday’s range. As we approach cash open price has yet to take out Wednesday’s low. At 8:15am ADP employment data came out below expectations. At 8:30am initial/continuing jobless claims data came out above expectations.
Also on the economic agenda today we have ISM non-mfg/services data and factory orders at 10am followed by crude oil inventories at 11am.
Yesterday we printed a double distribution trend down. The day began with a gap down and drive lower, a selling drive that pressed clean through the first hour of trade. Sellers briefly pushed the market into RE down just after the first hour. Then we worked back to the daily midpoint, which sellers defended. We spent the rest of the session inside the lower half of the daily range but never making new lows.
Heading into today my primary expectation is for sellers to work down through overnight low 7509.75. Look for buyers down at 7495.75 (08/24 gap) and two way trade to ensue.
Hypo 2 stronger sellers trade us down to 7487 before two way trade ensues.
Hypo 3 buyers work up through overnight high 7544.50 and sustain trade above it, setting up a move to target 7597.
Volume profiles, gaps, and measured moves:
If you enjoy the content at iBankCoin, please follow us on Twitter