NASDAQ futures are coming into Thursday gap down about -120 after an overnight session featuring extreme range and volume. Price drove lower overnight, steadily rotating downward from about 8pm New York until about 5:30am. From then onward price has stabilized. At 8:30am U.S.A. GDP data came out worse than expected. As we approach cash open price is hovering a bit below Wednesday’s low.
On the economic calendar today we have 4- and 8-week T-bill auctions at 11:30am.
Major NASDAQ components Apple, Alphabet and Amazon are all set to report earnings after the bell. Their collective results are likely to sway the NASDAQ.
Facebook reported earnings Wednesday after the bell. Shares of the social media conglomerate are -1% in pre-market trade.
Yesterday the NASDAQ printed a normal variation up. The day began with a gap up and after a brief two-way auction buyers began to campaign higher. Said buyers pressed the market range extension up earl on but failed to take out Tuesday’s high. Instead we chopped along the topside of the daily midpoint until 2pm when the Fed left their benchmark borrowing rate unchanged at 0%. Third reaction was up after the announcement and price eventually spiked higher, close the open gap left behind Monday. We fell back to the midpoint once more where buyers defended. We ended the session near the highs.
Heading into today my primary expectation is for buyers to work into the overnight inventory and close the gap up to 10,675. Buyers take out overnight high 10,702 before two way trade ensues.
Hypo 2 buyers stall out ahead of 10,625 setting up a move down through overnight low 10,502. Buyers defend 10,500 and two way trade ensues.
Hypo 3 sellers gap-and-go lower, trading down to 10,425.50 before two way trade ensues.
Volume profiles, gaps and measured moves:
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