NASDAQ futures are coming into Wednesday flat after an overnight session featuring extreme range and volume. Price was choppy overnight, first chopping higher and finding sellers who defended Tuesday’s midpoint, then lower, down through Tuesday low by a few ticks before responsive buyers rallied price back to unchanged. As we approach cash open, price is hovering slightly below the Tuesday midpoint.
On the economic calendar toady we have existing home sales at 10am followed by a 20-year bond auction at 1pm.
Also be aware, tech juggernauts Microsoft and Tesla are set to report earnings after the bell.
Yesterday we printed normal variation down. The day began with a gap up beyond the Monday trend day range. Sellers drove down into the open, quickly resolving the overnight gap and continuing their campaign lower until about noon New York. Then, after a one hour pause for lunch buyers rotated price back up to the daily midpoint. Sellers defended the mid and sent price to a new low of the day. There was a slight ramp into closing bell but we ended the day in the lower quadrant of range.
Heading into today my primary expectation is for buyers to work up through overnight high 10,916.25. From here we continue higher, up to 11,000 before two way trade ensues.
Hypo 2 stronger buyers take out all-time high 11,058.50 before two way trade ensues.
Hypo 3 sellers work down through overnight low 10,781.75. Look for buyers just below at 10,777 and two way trade to ensue.
Volume profiles, gaps and measured moves: