NASDAQ futures are coming into Thursday gap up after an overnight session featuring extreme range and volume. Price worked higher overnight, coming to within a few tick of record highs (but not exceeding them) before falling into a tight balance along the highs. At 8:30am initial/continuing jobless claims data came out mixed. As we approach cash open, price is hovering in the upper quadrant of Wednesday’s range.
The only other economic events today are 4- and 8-weekT-bill auctions at 11:30am.
Yesterday we printed a normal variation down. The day began with a pro gap up to new all-time highs. Then an open drive down send price careening lower, pausing briefly to chop around 9400 before continuing lower to close the overnight pro gap. Sellers continued a bit lower before finding responsive buyers near Tuesday’s NVPOC. It was choppy from here, with buyers eventually ramping price back up to the daily midpoint. We ended the session just below the mid.
Heading into today my primary expectation is for sellers to work into the overnight inventory and close the gap down to 9383.25. From here we continue lower, taking out overnight low 9375 before two way trade ensues.
Hypo 2 stronger sellers trade down to 9342 before two way trade ensues.
Hypo three buyers gap-and-go higher, defending 9400 before working up through overnight high 9460, setting up a move to 9500.
Levels:
Volume profiles, gaps, and measured moves:
