NASDAQ futures are coming into Wednesday gap up after an overnight session featuring extreme range and volume. Price was balanced for most of the overnight session, chopping along the lower quadrant of Tuesday’s range before spiking higher around 5am. The spike discovered sellers around Tuesday’s midpoint and as we approach cash open price is hovering below the Tuesday mid. At 8:30am durable goods and advance goods trade balance data came out _____________.
Also on the economic calendar today we have crude oil inventories at 10:30am followed by a 2-year note auction at 11:30am and a 5-year note auction at 1pm.
Yesterday we printed a double distribution trend down. The day began with a gap down and drive lower. The selling slowed briefly after closing the 06/19 open gap but continued to trend lower until about 3pm. We spent the rest of the day chopping along the low.
Heading into today my primary expectation is for sellers to press into the overnight inventory and close the gap down to 7629.50. From here we continue lower, down through overnight low 7616.25 setting up a move to tag the 7600 century mark. Look for buyers down at 7576 and two way trade to ensue.
Hypo 2 buyers press up through overnight high 7698 to tag the 7700 century mark. Look for sellers up at 7734 and two way trade to ensue.
Hypo 3 stronger sellers close the gap down at 7561.50 before two way trade ensues.
Volume profiles, gaps, and measured moves: