NASDAQ futures are coming into the day after Thanksgiving gap down after an overnight session featuring elevated range on extreme volume. Price was balanced overnight, chopping sideways below the Wednesday range. As we approach cash open, price is hovering near the Tuesday midpoint.
On the economic calendar today we have Markit manufacturing/service/composite PMI at 9:45am. There is also an early close at 1pm.
On Wednesday we printed a normal variation up. The day began with a gap up and test above the Tuesday high. This saw the market stall out and we marked time for the rest of the session, ultimately holding on the overnight gap despite some selling late in the session.
Heading into today my primary expectation is for buyers to work into the overnight inventory and close the gap up to 6575.75. From here we continue higher to 6600 before two way trade ensues.
Hypo 2 sellers work lower, down through overnight low 6518.25 setting up a move to target 6500 before two way trade ensues.
Hypo 3 stronger sellers sustain trade below 6500 setting up a move to target 6422.50 before two way trade ensues.
Levels:
Volume profiles, gaps, and measured moves:
