NASDAQ futures are coming into Wednesday gap up after an overnight session featuring extreme volume on elevated range. Price worked higher overnight, trading up beyond the Tuesday midpoint before settling into balance. As we approach cash open, price is hovering along the Tuesday mid.
There were several economic data points scheduled for release today including advance goods trades balance, building permits, business inventories, construction spending, factory orders, housing starts, the monthly budget statement, and net long-term TIC flows. None of these data will be released due to the government shutdown.
Yesterday we printed a double distribution trend down. The day began with a gap down as we began the trading week, with price opening just along last Friday’s low. Sellers engaged early on and pushed us lower. After a tight battle early on, the market succumbed to selling pressure and began to explore lower prices. Price traded down into last Tuesday’s range before discovering a responsive bid and two way trade ensuing.
Heading into today my primary expectation is for buyers to gap-and-go higher, trading up to 6724.50 before two way trade ensues.
Hypo 2 sellers work into the overnight inventory and close the gap down to 6654. Sellers continue lower, down through overnight low 6638.25. Look for buyers down at 6600 and two way trade to ensue.
Hypo 3 stronger buyers trade us up to 6748.50 before two way trade ensues.
Volume profiles, gaps, and measured moves:
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