I turn dials and fiddle with knobs to hone in on harmonic rotations
Joined Oct 26, 2011
3,534 Blog Posts

Flat chop overnight, here’s the Wednesday NASDAQ trading plan

NASDAQ futures are coming into Wednesday flat after an overnight session featuring elevated range on extreme volume.  Price was choppy overnight, with price bracketing in a wide range below the Tuesday midpoint.  As we approach cash open, price is hovering below the Tuesday midpoint.

On the economic calendar today we have crude oil inventories at 10:30am, a 2-year note auction at 11:30am, and a 5-year note auction at 1pm.

Yesterday we printed a normal variation down.  The day began with a gap up and spike higher.  We formed a sharp excess high at the Monday midpoint and began to auction lower.  Sellers eventually closed the overnight gap.  Late in the session, around 3:45pm, we ramped higher into the bell but still closed well-below the daily mid.

Heading into today my primary expectation is for buyers to work up through overnight high 7403.75 setting up a move to tag the Tuesday VPOC at 7414.50 before two way trade ensues.

Hypo 2 stronger buyers trade us up to 7460.25 before two way trade ensues.

Hypo 3 sellers work down through overnight low 7359.50 setting up a move to target 7314.50 before two way trade ensues.


Volume profiles, gaps, and measured moves:

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