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, marking time above Tuesday’s midpoint. Then around 8:30am something Fed Chairman Powell said creating a buying reaction that saw price spike about 70 points to a new all-time high. As we approach cash open, price is hovering at record highs.
On the economic calendar today we have Powell’s testimony to the House Financial Services Panel beginning at 10am. Crude oil inventories are due out at 10L30am. There’s a 10-year note auction at 1pm followed by FOMC Meeting minuets at 2pm.
Yesterday we printed a trend up. The day began with a gap down below Monday’s range. Sellers briefly probed below last Tuesday’s low before discovering a sharp responsive bid. Buyers then began a campaign higher, filling the overnight gap then counting higher to close the Friday/weekend gap. We closed near session high.
Heading into today my primary expectation is for the higher time frames to duke it out. This looks like wide rotations in both directions before buyers ultimately break away higher and tag 7950 before two way trade ensues.
Hypo 2 sellers press into overnight inventory, erase 8:30am spike higher and continue lower, down through overnight low 7811.25 setting up a tag of 7800 before two way trade ensues.
Hypo 3 stronger buyers tag 8000.
Volume profiles, gaps, and measured moves:
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