NASDAQ futures are coming into Wednesday gap up after an overnight session featuring extreme range and volume. Price worked sideways overnight, briefly trading below the Tuesday low around 8pm New York before rotating back up to the Tuesday midpoint, then back down again. As we approach cash open, price is hovering a bit below Tuesday’s midpoint.
On the economic calendar today we have crude oil inventories at 10:30am, 30-year note auction at 1pm and FOMC meeting minutes at 2pm.
FOMC minutes are released on a three week lag. Investors will be keen on listening to how the Fed was thinking in early March, when covid-19 denial was still running high.
Also be aware that Fed Chairman Jerome Powell is set to speak tomorrow at 10am.
Also remember that tomorrow is the last trading day before the long weekend.
Yesterday we printed a normal variation down. The day began with a pro gap up that sellers drove down into shortly after opening bell. Buyers initially rejected a move back down into Monday’s range, spiking price higher, up through the midpoint but unable to take us range extension up. Instead price fell back down through the midpoint and made new lows twice in a choppy manner before a buying rotation worked back up to the midpoint. Then we flushed lower into the close, closing on the lows.
Heading into today my primary expectation is for buyers to gap-and-go higher, trading up through overnight high 8143 setting up a tag of 8200. Look for sellers up at 8222 and two way trade to ensue.
Hypo 2 stronger buyers trade up to 8300 before two way trade ensues.
Hypo 3 sellers press into the overnight inventory and close the gap down to 8013 then continue lower, down through overnight low 7953.25. Look for buyers down at 7915.25 and two way trade to ensue.
Volume profiles, gaps and measured moves:
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