NASDAQ futures are coming into Wednesday gap up after an overnight session featuring extreme range and volume. Price worked higher overnight, breaking through the Tuesday high around 10pm eastern and chopping up above it until about 3am when another leg higher sent prices to levels unseen since two Wednesday’s back when the market went trend down. As we approach cash open prices is about 50 points off the globex high and hovering above Tuesday’s high.
On the economic agenda today we have a 30-year bond auction at 1pm followed by consumer credit at 3pm.
Yesterday we printed a normal variation down. The day began with a small gap down. Buyers drove higher off the open, printing a dynamic initial balance. Then we spent much of the morning/early afternoon inside the IB. It started to look like another normal day until late in the session when sellers managed to briefly push the market range extension down. This however triggered a failed auction and we ramped higher into the bell—eventually settling above the daily midpoint.
Heading into today my primary expectation is for sellers to work into the overnight inventory and attempt a move back into Tuesday’s high 7034.75. Buyers reject the attempt sending us up through overnight high 7122.25. Look for sellers up at 7156 and two way trade to ensue.
Hypo 2 sellers work a full gap fill down to 7016.50 setting up a move down through overnight ow 6971.50. Look for buyers down at the composite VPOC 6945.50 and two way trade to ensue.
Hypo 3 gap-and-go higher, sustained trade above 7156 sends us up to 7183.25 before two way trade ensues.
Volume profiles, gaps, and measured moves:
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