NASDAQ futures are coming into Friday gap up after an overnight session featuring elevated volume and range. Price worked higher overnight, trading up through the Thursday high just before midnight New York before settling into balance above Thursday’s midpoint. Then at 8:30am Non-farm payroll data came out well above expectations and sent price on a spike higher to a new overnight high. As we approach cash open, price is hovering just about 20 points below all-time record NASDAQ highs.
Also on the economic calendar today we have ISM employment/manufacturing at 10am.
Yesterday we printed a normal variation down. The day began flat, and the open featured a selling drive down. Sellers traded down and tagged the naked VPOC left behind Wednesday before we formed a sharp excess low. We then bounced back up and through the midpoint before chop ensued, chopping along the bottom-side of the mid before a late-day ramp took price back up above the midpoint.
Heading into today my primary expectation is for buyers to gap-and-go higher, trading up through record high 8141 to tag 8150 before two way trade ensues.
Hypo 2 stronger buyers trade up to 8200 before two way trade ensues.
Hypo 3 sellers press into overnight inventory and close the gap down to 8089.50 then continue lower, down through overnight low 8084.50 before two way trade ensues.
Volume profiles, gaps, and measured moves: