NASDAQ futures are coming into Friday gap up after an overnight session featuring extreme range on elevated volume. Price spiked higher twice during the globex session, with the second spike taking price up near the week’s high. As we approach cash open, price is hovering in the upper quadrant of Monday’s range.
On the economic calendar today we have ISM manufacturing/employment at 10am.
Yesterday we printed a normal variation up. The day began with a gap down and drive higher to close the overnight gap. Sellers stepped in at the gap and pressed to new low of day, but could not take the market range extension down. Instead we worked back up through the morning high. Price stalled ahead of Wednesday’s high and two way trade ensued.
Heading into today my primary expectation is for sellers to work into the overnight inventory but fail to regain Thursday’s range. Buyers defend around 7130.75 setting up a move to take out overnight high 7159.50 and up through the Monday high 7168.50. This triggers a move up to 7200 before two way trade ensues.
Hypo 2 sellers work a full gap fill down to 7114 then continue lower, down through overnight low 7098.25. Look for buyers down at 7094.50 and two way trade to ensue.
Hypo 3 gap and go higher, sustain trade above 7200 setting up a move to close the gap at 7219. \
Volume profiles, gaps, and measured moves:
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