I turn dials and fiddle with knobs to hone in on harmonic rotations
Joined Oct 26, 2011
3,852 Blog Posts

Volatility compressing, NASDAQ flat into Thursday, here’s the trading plan

NASDAQ futures are coming into Thursday flat after an overnight session featuring elevated volume and range.  Price was balanced overnight and as we approach cash open prices are hovering along the Wednesday low.  At 8:30am initial/continuing jobless claims data came out better-than-expected.

Also on the economic calendar today we have a 4- and 8-week T-bill auction at 11:30am followed by consumer credit at 3pm.

Yesterday we printed a normal variation down.  The day began flat and a brief two-way auction gave way to selling.  Sellers were able to push the market range extension down early on.  Then we checked back to the daily midpoint, sellers defended, and we ended the day chopping along the daily low.

Heading into today my primary expectation is for buyers to work up through overnight high 7126.75.  Look for sellers up at 7138.25 and two way trade to ensue.

Hypo 2 stronger buyers trade us up to 7168 before two way trade ensues.

Hypo 3 sellers press down through overnight low 7082.50 setting up a move to target the open gap at 7035.25 before two way trade ensues.


Volume profiles, gaps, and measured moves:

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