NASDAQ futures are coming into Wednesday gap up +100 after an overnight session featuring extreme range and volume. Price worked higher overnight, steadily campaigning its way back up into the Tuesday range and back up near the highs. As we approach cash open, price is hovering near Tuesday high aka swing high.
On the economic calendar today we have crude oil inventories at 10:30am, a 20-year bond auction at 1pm and the FOMC minutes at 2pm.
Yesterday we printed a neutral extreme down. The day began with a slight gap up and after a brief open two-way auction buyers stepped in and drove to new swing highs. Said buyers stalled out ahead of the swing high by a few ticks, leaving behind a weak high before sellers careened price down through the day’s range, eventually pushing neutral near 4pm New York and closing price down on the lows.
Neutral extreme down.
Heading into today my primary expectation is for buyers to gap-and-go higher, trading up through swing high 9417.25 on their way to tagging 9437.25 before two way trade ensues.
Hypo 2 stronger buyers trade up and fill the 02/21 gap up at 9459.25 before two way trade ensues.
Hypo 3 sellers press into the overnight inventory and close the gap down to 9298.75. Look for buyers down at 9258.75 and two way trade to ensue.
Volume profiles, gaps and measured moves:
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