NASDAQ futures are coming into Wednesday gap up after an overnight session featuring NORMAL range on elevated volume. Price worked sideways overnight, trading inside of the Tuesday range. As we approach cash open, price is hovering near the daily midpoint.
On the economic calendar today we have a 2-year floating rate auction at 11:30am followed by FOMC meeting minutes at 2pm.
Yesterday we printed a normal variation up. The day began with a gap down and drive higher. Buyers closed the overnight gap then continued higher to take out overnight high. Then price stalled, and we fell back to the midpoint by the end of the session.
Heading into today my primary expectation is for sellers to work into the overnight inventory and close the gap down to 7068.25. From here we continue lower, down through overnight low 7057.25. Look for buyers ahead of the Monday low 7035.75 and two way trade to ensue.
Hypo 2 gap-and-go higher, price trades up through overnight high 7085 and continues higher, tagging 7100 before two way trade ensues.
Hypo 3 stronger buyers sustain trade above 7100 setting up a move to target 7118 before two way trade ensues.
Levels:
Volume profiles, gaps, and measured moves:
