NASDAQ futures are coming into Thursday with a slight gap up after an overnight session featuring extreme range and volume. Price worked sideways overnight, with all Globex trade contained inside the lower half of Wedneday’s range. As we approach cash open prices are hovering in the lower quadrant of Wednesday’s range. At 8:30am advance retail sales came out better-than-expected, Philly Fed data below expectations, and initial/continuing jobless claims below expectations.
Also on the economic calendar today we have crude oil inventories at 11am. With oil prices down nearly -9% in the past week, the inventory data may be more likely to spark a reaction in the NASDAQ futures. We also have Jerome Powell speaking about the hurricane Harvey recovery efforts at 11:30am.
NASDAQ traders sticking around after the bell should also be aware that major tech component NVIDIA is set to report earnings after market close.
Yesterday we printed a double distribution trend down. The day began with a gap up, in range which sellers resolved after a brief two-way auction at the open. Sellers then continued working price lower, down through the weekly low. Late in the session a strong responsive bid was discovered that spiked price up to the daily midpoint. The midpoint was a solid wall of selling, however, and we traded back down near the session low by end of day.
Heading into today my primary expectation is for sellers to press down through overnight low 6751.50 setting up a move to target 6718.50 before two way trade ensues.
Hypo 2 stronger sellers press down through 6700 and sustain trade below it, setting up a move to test down through swing low, down below 6666.
Hypo 3 buyers work up through overnight high 6843.25 setting up a move to target 6900 before two way trade ensues.
Volume profiles, gaps, and measured moves:
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