NASDAQ futures are coming into Friday flat after an overnight session featuring elevated volume on normal range. Price was balanced overnight, chopping along the lower quadrant of Thursday’s range. As we approach cash open, price is hovering near the Thursday low.
On the economic calendar today we have the final October reading of Sentiment from the University of Michigan at 10am.
Yesterday we printed a normal variation up. The day began with a gap up and two way auction. Seller then stepped in and began working down into the gap. Buyers rejected a move back into the Wednesday range, forming an excess low before the auction turned and went range extension up. Said buyers were unable to take out weekly highs before we settled into chop just above the daily midpoint. Amazon earnings during settlement spiked price back down near session low.
Heading into today my primary expectation is for sellers to press down through overnight low 7918.50 setting up a gap fill down to 7902.50. Look for buyers down at 7896 and two way trade to ensue.
Hypo 2 buyers press up through overnight high 7946.50 setting up a test above the Thursday high 7984. Look for sellers up at 8000 and two way trade to ensue.
Hypo 3 stronger sellers trade down to 7872.50 before two way trade ensues.
Volume profiles, gaps, and measured moves:
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