NASDAQ futures are coming into Wednesday gap up after an overnight session featuring extreme volume on elevated range. Price worked higher overnight, drifting up into the upper quadrant of Monday’s range. At 8:30AM durable goods and initial/continuing jobless claims data both came out worse-than-expected. As we approach cash open, price is holding near Globex high.
Also on the economic calendar today we have Markit composite PMI at 9:45am, new home sales at 10am, 4- and 8-week T-bill auctions at 11:30am, and a 7-year note auction at 1pm.
Also be aware that Amazon is set to report earnings after the bell.
Yesterday we printed a normal variation up. The day began with a gap up that was resolved during the morning two-way auction. Sellers were unable to take out Monday’s trend day low. Instead buyers stepped in and worked us range extension up by late morning. We then chopped along the midpoint before spiking back up to session high during settlement, in part due to strong earnings from Tesla.
Heading into today my primary expectation is for buyers to gap-and-go higher, trading up to 7963.75 before two way trade ensues.
Hypo 2 stronger buyers trade up to 7977 before two way trade ensues.
Hypo 3 sellers press into the overnight inventory and close the gap down to 7902.50. Look for buyers down at 7896 and two way trade to ensue.
Volume profiles, gaps, and measured moves:
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