NOTE: I will be trading the /NQH19 (March) contract until next week, and all price levels noted below are in reference to the /NQH19 contract, despite most major investors rolling forward to the June contract yesterday.
NASDAQ futures are coming into Friday gap down after an overnight session featuring elevated range and volume. Price worked lower overnight, straight and steady down into the 2/21 range before coming into balance. As we approach cash open, price is hovering inside the 2/21 range. At 8:30am Non-farm payroll data came out far worse than expected. The initial reaction is selling.
Also on the economic calendar today we have Fed Chairman Jay Powell set to speak this evening, after market close.
Yesterday we printed a normal variation down. The day began flat and then with a drive lower. Buyers stepped in at the 2/21 open gap and we drove back up to the daily mid. Sellers defended mid and we rotated back to the low near end of day.
Heading into today my primary expectation is for buyers to work into the overnight inventory and close the gap up to 7031.75. From here we continue higher, up through overnight high 7034. Look for sellers up at 7054 and two way trade to ensue.
Hypo 2 sellers gap and go lower, trading down to 6907 before two way trade ensues.
Hypo 3 stronger buyers trade us up to 7089 before two way trade ensues.
Levels:
Volume profiles, gaps, and measured moves:
