NASDAQ futures are coming into Thursday flat after an overnight session featuring extreme range and volume. Price was balanced overnight, holding Thursday range. As we approach cash open, price is hovering above the Wednesday midpoint.
On the economic calendar today we have existing home sales at 10am, 4- and 8-week T-bill auctions at 11:30am and a 10-year TIPS auction at 1pm.
Yesterday we printed a double distribution trend down / neutral day. The day began with a gap down that buyers went to work resolving early on. Buyers even pushed range extension up for a moment, tagging the Tuesday naked VPOC before sellers came in. Sellers drifted price back down near the session low before a strong liquidation drive pushed price down. This selling served to resolve last Thursday’s open gap before discovering responsive buyers who worked price back up to the midpoint by day’s end.
Double distribution neutral day.
Heading into today my primary expectation is for buyers to work up through overnight high 8308 setting up a move to tag the naked VPOC at 8324 before two way trade ensues.
Hypo 2 stronger buyers trade up to 8339 before two way trade ensues.
Hypo 3 sellers press down through overnight low 8240 setting up a move to tag 8200 before two way trade ensues.
Levels:
Volume profiles, gaps, and measured moves:
