NASDAQ futures are coming into Friday with a slight gap down after an overnight session featuring extreme range and volume. Price worked lower overnight, slowly, trading below the Thursday midpoint before discovering a bid. As we approach cash open, price is hovering back above the Thursday mid. At 8:30am Nonfarm payroll data came out much better than any forecast expected.
Also on the economic calendar today we have ISM manufacturing, construction spending, and the final January reading of sentiment from the University of Michigan.
The only major tech company still due to report earnings is Google parent Alphabet. They are set to report earnings Monday, February 4th after market close.
On Thursday the NASDAQ printed a normal variation up. The day began with a gap up and drive higher. Price stalled out just beyond the weekly ATR band (6923.75) and just before the old composite VPOC 6950. We then retraced back to the midpoint before rallying into the bell.
Heading into today my primary expectation is for sellers to gap-and-go lower, trading down through overnight low 6862.25. Look for buyers down at 6854.50 and two way trade to ensue.
Hypo 2 buyers work into the overnight inventory to close the gap up to 6917.50 then continue higher, up through overnight high 6934 before being magnetized to the old composite VPOC at 6950. Look for sellers up at 6963.50 and two way trade to ensue.
Hypo 3 stronger sellers work a Wednesday gap fill down to 6836.50. Look for buyers down at 6819.75 and two way trade to ensue.
Volume profiles, gaps, and measured moves:
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