NASDAQ futures are coming into Friday gap down after an overnight session featuring extreme volume on elevated range. Price worked lower overnight, reversing all of Thursday’s gains in a slow, methodical walk lower. At 8:30am personal consumption data came out below expectations.
Also on the economic agenda today we have Chicago purchasing manager at 9:45am followed by U of Michigan’s final September reading of sentiment at 10am.
Yesterday we printed a normal variation up. The day began with a gap up and drive higher. Buyers trade to a new high of the week and held the gains through lunch before spending the rest of the session drifting back to the daily midpoint.
Heading into today my primary expectation is for buyers to work into the overnight inventory and close the gap up to 7658. From here we continue higher, up through overnight high 7674.50. Loof for sellers up at 7696.75 and two way trade to ensue.
Hypo 2 sellers take out overnight low 7617 off the open and trade down to 7613.25 before two way trade ensues.
Hypo 3 stronger sellers trade a gap fill down to 7590.50 before two way trade ensues.
Volume profiles, gaps, and measured moves:
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