I turn dials and fiddle with knobs to hone in on harmonic rotations
Joined Oct 26, 2011
3,781 Blog Posts

Big gap up into Thursday, here is the morning NASDAQ trading plan

NASDAQ futures are coming into Thursday gap up after an overnight session featuring extreme range and volume.  Price worked higher overnight after spending a good portion of the evening globex session in balance.  As we approach cash open price is hovering above the Wednesday high and just below the weekly high.  At 8:30am consumer price index data came out worse than expected and initial/continuing jobless claims data came out better than expected.

Also on the economic agenda today we have a 30-year bond auction at 1pm and a monthly budget statement at 2pm.

Yesterday we printed a normal variation down.  The day began with a gap down and drive lower.  Sellers were unable to drive beyond the Tuesday low, instead encountering a strong responsive bid and printing a sharp bounce.  We then rotated to the 61.8% retracement of the bounce before a secondary buy ramp carried us into the close.

Heading into today my primary expectation is for buyers to gap-and-go higher, sustaining trade above 7550 setting up a move to target 7600 before two way trade ensues.

Hypo 2 sellers work into the overnight inventory and close the gap down to 7485.75 we then continue lower, down through overnight low 7470 before two way trade ensues.

Hypo 3 buyers trade up beyond the weekly high 7541 but cannot trade up beyond 7550 and two way trade ensues.


Volume profiles, gaps, and measured moves:

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