NASDAQ futures are coming into Wednesday gap up after an overnight session featuring extreme range and volume. Price was balanced overnight, chopping along the bottom-side of Tuesday’s midpoint until about 2am when buyers stepped in and initiated higher prices. As we approach cash open, price is hovering about 60 point above the Tuesday mid.
On the economic calendar today we have crude oil inventories at 10:30am. Investors are likely to be keen on this data after seeing front month oil futures briefly trade negative on Monday.
Yesterday we printed a double distribution trend down. The day began with a pro gap down below the Friday and Monday range. Sellers drove lower off the open, trading down to the lower weekly ATR band where price paused for a moment before making a more significant leg lower. This second leg saw price trading down near the open gap left behind on 04/13 but not quite filling it. Instead responsive buyers defended a conviction buy zone they created from 04/13 at 11:21 am until 04/14 at 3:50pm. This led to a strong spike, all the way back up to the daily midpoint. we ended the day chopping along the lower quadrant of range.
Heading into today my primary expectation is for buyers to gap-and-go higher, trading up to 8666 before two way trade ensues.
Hypo 2 stronger buyers close the Monday gap up at 8690.75. Look for sellers up at 8798.25 and two way trade to ensue.
Hypo 3 sellers press into the overnight inventory and close the gap down to 8431.25. Sellers continue lower, down through overnight low 8400. Look for buyers just below at 8388 and for two way trade to ensue.
Levels:
Volume profiles, gaps and measured moves:
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