NASDAQ futures are coming into Friday gap down after an overnight session featuring extreme range and volume. Price was balanced overnight, chopping briefly to a new all-time high during globex trade before settling into balance above Thursday’s midpoint. At 8:30am Nonfarm payroll data came out stronger-than-expected, expand the following tweet to see more info on the job’s report:
BREAKING: HUGE BEAT
*U.S. JAN. PAYROLLS RISE 225,000 M/M; EST. 165,000https://t.co/eohRBekV46
— Joe Weisenthal (@TheStalwart) February 7, 2020
As we approach cash open, price is hovering just above the Thursday midpoint.
On the economic calendar today we have the Fed releasing their semi-annual monetary policy report to Congress at 11am followed by consumer credit at 3pm.
Yesterday we printed a double distribution trend up. The day began with a slight gap up that sellers quickly resolved during the opening auction. From then-on buyers were in control, working price up near all-time highs before settling into a tight balance along the high. We ramped up near end-of-day but stopped a few points shy of new highs.
Heading into today my primary expectation is for buyers to work into the overnight inventory and close the gap up to 9454.75. From here we continue higher, up through overnight high 9471, setting up a move to tag 9500 before two way trade ensues.
Hypo 2 sellers work down through overnight low 9395. Look for buyers down at 9379.50 and two way trade to ensue.
Hypo 3 stronger sellers trade down to 9341.50 before two way trade ensues.
Levels:
Volume profiles, gaps, and measured moves:
