NASDAQ futures are coming into Friday gap up after an overnight session featuring extreme range and volume. Price worked higher overnight, trending up in a steady ascent for most of the Globex session following stronger-than-expected earnings from chip-maker NVIDIA Thursday afternoon. As we approach cash open, price is hovering near Wednesday’s high, effectively erasing much of the mid-week selling pressure.
On the economic calendar today we have University of Michigan’s prmary August reading of sentiment.
Yesterday we printed a normal variation down. The day began with a slight gap up that sellers quickly resolved lower after a brief two-way auction at the open. Price chopped around the midpoint for much of the day before extending lower twice. We eventually ramped back above the midpoint and closed above it.
Heading into today my primary expectation is for sellers to press into the overnight inventory and trade down to 7545. Buyers step in here and two way trade ensues.
Hypo 2 buyers to gap-and-go higher, trading up through overnight high 7600.75 and probing to 7640.25 before two way trade ensues.
Hypo 3 stronger sellers work a full gap fill down to 7493.50. Look for buyers down at 7489.25 and two way trade to ensue.
Volume profiles, gaps, and measured moves:
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