NASDAQ futures are coming into Friday gap down after an overnight session featuring extreme range and volume. Price worked lower overnight, drifting back down to the midpoint of Thursday’s range before chopping into balance. As we approach cash open, price is hovering above the Thursday mid.
There are no economic events today.
Yesterday we printed a trend up. The day began with a gap up and two-way auction. Buyers rejected a move into the Wednesday range before the trend up began and lasted all session, eventually ending the day in the upper quadrant of last Friday’s range.
Heading into today my primary expectation is for buyers to press into the overnight inventory and close the gap up to 7735.75. From here we continue higher, up through overnight high 7738.50. Look for sellers up at 7761.25 and two way trade to ensue.
Hypo 2 stronger buyers sustain trade above 7761.25 setting up a move to tag the 7800 century mark.
Hypo 3 sellers press down through overnight low 7657.25 and then begin erasing the entire trend up, working down to 7607 before two way trade ensues.
Volume profiles, gaps, and measured moves:
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