NASDAQ futures are coming into Wednesday gap up after an overnight session featuring extreme range and volume. Price was balanced overnight after taking out Tuesday’s low briefly. We held a balance along the lows until about 5:45am when it began exploring higher prices. At 9am Fed Chairman Powell is set to speak. As we approach cash open price is hovering in the upper quadrant of Tuesday’s range.
Also on the economic calendar today we have crude oil inventories at 10:30am followed by a 30-year bond auction at 1pm.
Yesterday we printed normal variation down, but with a trend down in the final hour of trade. The day began with a gap up and after a brief probe a few ticks above the prior swing high the overnight gap was resolved. We then spend several hours chopping above the daily midpoint, then a few more hours in a tight chop below the daily mid, then the selling came in during the last hour. We ended the day down inside of last Thursday’s range.
Heading into today my primary expectation is for buyers to gap-and-go higher, trading up through overnight high 9169.50. Look for sellers up at 9200 and two way trade to ensue.
Hypo 2 sellers press into the overnight inventory and close the gap down to 9076.75. Sellers continue lower, down through overnight low 8997.50. Look for buyers down at 8952 open gap and two way trade to ensue.
Hypo 3 stronger sellers trade down to 8900 before two way trade ensues.
Volume profiles, gaps and measured moves:
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