NASDAQ futures are coming into Thursday with a slight gap down after an overnight session featuring extreme range and volume. Price dropper lower overnight, trading down to a new weekly low before catching a responsive bid. Said buyers steadily worked price back up into Wednesday’s range. At 8:30am initial/continuing jobless claims data came out mixed and as we approach cash open sellers are attempting to reject price out of Wednesday’s range.
On the economic calendar today we have 4- and 8-week T-bill auctions at 11:30am followed by a 30-year TIPS auction at 1pm.
Major chip maker and NASDAQ component Intel announced a $10 billion dollar share buyback program this morning. Share are up about 2.75% in premarket trade.
Yesterday the NASDAQ printed a neutral extreme down. The day began with a slight gap down which was resolved during the opening auction. Then sellers pressed lower, tagging the 11,333 volume profile level before finding an early low and beginning to campaign higher. Buyers eventually took out overnight high by a point. Overnight high was also the current all-time-high. Then the auction failed and we saw a sharp sell down through the midpoint that eventually pressed neutral. Sellers defended a check back to the daily mid and we ended the day near session low. Neutral extreme down.
Heading into today my primary expectation is for sellers to reject price down away from the Wednesday range, sending price down through overnight low 11,221.50. Look for buyers below at 11,212.25 and two way trade to ensue.
Hypo 2 buyers work into the overnight inventory, reclaiming Wednesday low early on and sustaining trade above 11,324.75. After taking out overnight high we discover sellers around 11,370.75 and two way trade ensues.
Hypo 3 stronger buyers trade up to 11,400 before two way trade ensues.
Levels:
Volume profiles, gaps and measured moves:
