NASDAQ futures are coming into Wednesday, day before Thanksgiving, gap up after an overnight session featuring extreme range and volume. Price worked higher overnight, exploring higher prices but staying inside the Tuesday range. As we approach cash open price is hovering just below the Tuesday high. At 8:30am durable goods and initial/continuing jobless claims data came out below expectations.
Also on the economic calendar today we have leading index, existing home sales, and the final November reading of U. of Michigan sentiment at 10am, followed by crude oil inventories at 10:30am.
Yesterday we printed a normal variation up. The day began with a pro gap down and wide two-way auction. The opening behavior discovered a responsive bid down below overnight low and we spent the rest of the morning working higher. Sellers rejected an attempt back into Monday range, instead rotating the market back down to the daily midpoint through most of the afternoon. We closed near, but below the mid.
Heading into today my primary expectation is for buyers to work up and close the Monday open gap at 6672. From here we continue higher up to 6700 before two way trade ensues.
Hypo 2 sellers work into the overnight inventory and close the gap down to 6532.50. From here we continue lower, down through overnight low 6509. Look for buyers down at 6500 and two way trade to ensue.
Hypo 3 stronger buyers trade us up to 6730 before two way trade ensues.
Levels:
Volume profiles, gaps, and measured moves:
