NASDAQ futures are coming into Wednesday flat after an overnight session featuring extreme range and volume. Price worked lower overnight, trading down through the lows of the last 8 days, poking into the October 1st range before rotating back into yesterday’s range and coming into balance. As we approach cash open, price is hovering inside the lower quadrant of yesterday’s range.
On the economic calendar today we have crude oil inventories at 10:30am, 2-year note auction at 11:30am and a 5-year note auction at 1pm.
After the bell, we’ll hear earnings from three major NASDAQ components: Microsoft, Paypal, and Tesla.
Yesterday we printed a trend down. The day began with a gap up near the current swing high. After a two-way auction sellers stepped in and began working price lower, closing the overnight gap and continuing lower, down through Monday’s low and eventually accelerating to the downside late in the day to close in the lower quadrant of last Friday’s range.
Heading into today my primary expectation is for sellers to press down through Tuesday low 7850.25. This sets up a move down through overnight low 7810.25. Look for buyers down at 7800 and two way trade to ensue.
Hypo 2 buyers press up through overnight high 7872 setting up a move to target 7880 before two way trade ensues.
Hypo 3 stronger sellers trade us down to 7783.75 before two way trade ensues.
Volume profiles, gaps, and measured moves:
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