NASDAQ futures are coming into Wednesday with a slight gap up after an overnight session featuring extreme volume on elevated range. Price worked higher overnight, trading up beyond the current swing high before coming into a balance. We are still working up into the February 20th range, and as we approach cash open, price is hovering up above Tuesday’s high.
On the economic calendar today we have factory orders at 10am followed by crude oil inventories at 10:30am.
Yesterday we printed a neutral extreme up. The day began with a slight gap up. Sellers resolved the gap with a drive down on the open. Buyers made an early campaign up through the Monday high that was quickly met with responsive selling. Sellers probed one point below the Monday low before the auction failed and reversed higher. The rest of the day was spent campaining higher, with price eventually ramping up into closing bell and closing on the highs.
Heading into today my primary expectation is for sellers to work back down into Tuesday high 9648.25 then continuing lower, down through overnight low 9635.50. Look for buyers down at 9600 and two way trade to ensue.
Hypo 2 stronger sellers tag 9557 before two way trade ensues.
Hypo 3 buyers reject a move back into Tuesday range 9648.50 setting up a run up through overnight high 9697.75. Look for sellers up at 9713.25 and two way trade to ensue.
Volume profiles, gaps and measured moves:
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