I turn dials and fiddle with knobs to hone in on harmonic rotations
Joined Oct 26, 2011
3,848 Blog Posts

NASDAQ flat heading into Thursday, here’s the trading plan

NASDAQ futures are coming into Thursday with a slight gap up after an overnight session featuring extreme range and volume.  Price worked higher around 3:30am after spending much of the overnight session in balance.  At 8:30am initial/continuing jobless claims and trade balance data came out worse-than-expected.  As we approach cash open, price is hovering in the upper-quadrant of Wednesday’s range.

Also on the economic calendar today we have 4- and 8-week T-bill auctions at 11:30am.

Yesterday we printed a normal variation down.  The day began with a gap up and drive lower.  Sellers managed to close the overnight gap within the first hour and continue lower, nearly tagging the naked VPOC of Tuesday before discovering a responsive bid.  Buyers then worked price back up through the daily midpoint and defended it for the rest of the session.  We ramped higher near end-of-day but not enough to push neutral.

Heading into today my primary expectation is for buyers to work up through overnight high 7264.25 setting up a move to target the open gap at 7294.75.  Look for sellers up at 7300 and two way trade to ensue.

Hypo 2 sellers press down into the overnight inventory and trade down through overnight low 7181 setting up a move to target 7178.25 before two way trade ensues.

Hypo 3 stronger buyers sustain trade above 7307.25 setting up a move to target 7347.25.


Volume profiles, gaps, and measured moves:

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