NASDAQ futures are coming into Wednesday flat after an overnight session featuring elevated volume on normal range. Price was balanced overnight, trading along the Tuesday midpoint. At 8:15am ADP employment data came out below expectations. As we approach cash open, price is hovering above the Tuesday mid.
Also on the economic calendar today we have crude oil inventories at 10:30am followed by the beige book at 2pm.
Yesterday we printed a normal variation up. The day began with a gap down and small move lower. Responsive buyers were on the scene near the Monday NVPOC 7130 and from there onward we auctioned higher, closing the overnight gap, going range extension up and eventually settling into two-way trade before buyers could take out the Monday high. The day ended just above daily mid.
Heading into today my primary expectation is for buyers to work into the overnight inventory and close the gap up to 7164.75. From here we continue higher, up through overnight high 7168.75. Look for sellers up at 7186.25 and two way trade to ensue.
Hypo 2 stronger buyers trade up and probe Monday high 7211.50. Look for sellers just beyond, up at 7222.75 before two way trade ensues.
Hypo 3 sellers press down through overnight low 7138.75 setting up a move to target 7100 before two way trade ensues.
Volume profiles, gaps, and measured moves:
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