NASDAQ futures are coming into Wednesday pro gap up, a second pro gap in a row, after an overnight session featuring extreme range and volume. Price was balanced overnight until about 3:30am New York when some news of a coronavirus cure spiked price higher. Since then, there was a bit of a balance around 9420 and as we approach cash open, price is hovering at record highs, up beyond 9450.
On the economic calendar today we have ISM Non-Manufacturing/Services composite at 10am followed by crude oil inventories at 10:30am.
Yesterday we printed a trend up. The day began with a gap up and two-way auction before buyers stepped in and methodically discovered higher prices. After taking out the 9300 century mark the auction tightened up and balanced for a bit before continuing higher and ended near high of day.
Heading into today my primary expectation is for the higher timeframe to be active. We are out of balance. Primary hypo is for buyers to gap-and-go higher, working up to tag the 9500 century mark before two way trade ensues.
Hypo 2 sellers work into the overnight inventory and check back to that 3:30am news, working down to 9353.75 before two way trade ensues.
Hypo 3 stronger sellers trade down to 9326.25 before two way trade ensues.
Volume profiles, gaps, and measured moves:
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