NASDAQ futures are coming into Thursday down a quick -100 after an overnight session featuring extreme range and volume. Price was balanced for much of the overnight session after a brief move up beyond the Wednesday high. Many hours were spent compressing near 9400. Then around 8am New York sellers broke the compression to the downside. As we approach cash open, price is trading up above yesterday’s midpoint.
On the economic calendar today we have consumer confidence and new home sales at 10am, 3- and 6-month T-bill auctions at 11:30am and a 2-year note auction at 1pm.
Yesterday we printed a neutral extreme up. The day began with a gap down and after a brief open two-way auction sellers stepped in and drove price lower, trading down into the gap left behind between 05/15-05/18 (weekend gap). Before sellers could probe the entire gap a strong responsive buy pushed into the market. Said buyers reversed all morning selling before becoming initiative. The buying continued into closing bell, with price eventually closing up near Tuesday’s midpoint.
Heading into today my primary expectation is for buyers to work into the overnight inventory and close the gap up to 9435.50. From here we continue higher, through overnight high 9481.75. Look for seller sup at 9496.75 and two way trade to ensue.
Hypo 2 sellers hold below 9380 early on setting up a leg lower down through overnight low 9320.50. Sellers tag 9300 then look for buyers down at 9291.50.
Hypo 3 stronger sellers trade down to 9263 before two way trade ensues.
Volume profiles, gaps and measured moves:
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