NASDAQ futures are coming into Friday gap up after an overnight session featuring extreme range and volume. Price worked higher overnight, making a steady campaign higher after briefly probing below the Thursday low. The move higher was accented by Chinese economic data, and as we approach cash open, price is hovering near the Thursday high.
On the economic calendar today we have the primary April reading of sentiment from the University of Michigan.
Yesterday we printed a normal variation down. The day began with a slight gap up beyond the Wednesday high that sellers quickly worked into. Within 30 minutes of the cash open, price had taken out overnight low and discovered a responsive bid. Sellers defended a checkback to the midpoint and made a second, initiative move lower which tagged the Wednesday naked VPOC at 7606.25 before buyers stepped in and drifted price a bit higher into the close. We ended the day below session mid.
Heading into today my primary expectation is for buyers to gap-and-go higher, trading up through overnight high 7665 to set up a move to target 7700 before two way trade ensues.
Hypo 2 sellers work into the overnight inventory and close the gap down to 7616. Sellers continue lower, down through overnight low 7601.50 to close the gap at 7593.25 before two way trade ensues.
Hypo 3 stronger sellers trade us down to 7588.50 before two way trade ensues.
Volume profiles, gaps, and measured moves:
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