NASDAQ futures are coming into Wednesday gap down after an overnight session featuring featuring extreme range and volume. Price worked lower overnight, trading down through the recent swing low, down into the September 3rd range before settling into a balance. As we approach cash open, price is hovering inside of last Friday’s range.
On the economic calendar today we have crude oil inventories at 10:30am.
Yesterday we printed a double distribution trend down. It was nearly a trend day but there were signs of buyers—who spiked price higher on the open before being overrun with sale orders, and again late in the session around the Friday gap fill 7699.50, showing up around 2pm New York and rotating price higher a bit, before finding seller in the lower quadrant of the range who worked price back down near the lows before end of day.
Heading into today the NASDAQ is out of balance from yesterday and we are likely to see higher time frame participation at the open. Look for sellers to gap-and-go lower, trading down to close the 09/03 open gap at 7616.75. Look for buyers down at 7596.75 and two way trade to ensue.
Hypo 2 buyers work into the overnight inventory and close the gap up to 7697. Look for price to continue higher, up through overnight high 7730.50 before two way trade ensues.
Hypo 3 full on liquidation, trading down to 7573 before two way trade ensues.
Volume profiles, gaps, and measured moves:
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