NASDAQ futures are coming into Wednesday gap down after an overnight session featuring extreme volume on elevated range. Price worked lower overnight, trading down through the Tuesday low and down into the lower quadrant of Monday’s range before discovering a bid. As we approach cash open, price is hovering inside the lower quad of yesterday’s range.
On the economic calendar today we have Federal Reserve Chairman Jay Powell speaking to congress at 11am followed by a monthly budget statement at 2pm.
Yesterday we printed a neutral day. The day began with a slight gap up and drive higher, trading up to 8300 before settling into a tight range. Then, around 2:15pm New York sellers made a hard move lower, making a new low of day and pushing us neutral. Then buyers ramped price back to the midpoint by day-end.
Neutral.
Heading into today my primary expectation is for buyers to work into the overnight inventory and close the gap up to 8271.75. From here we continue higher, up through overnight high 8275.50. This sets up a move to probe beyond Tuesday high 8300.25. Look for sellers up at 8336 and two way trade to ensue.
Hypo 2 buyers close gap 8271.75 then stall just above overnight high 8275.50 and balance out.
Hypo 3 sellers press down through overnight low 8220 setting up a move to target 8200. Look for buyers down at 8187.75 and two way trade to ensue.
Levels:
Volume profiles, gaps, and measured moves:
