NASDAQ futures are coming into the day after US elections up a quick +400 after an overnight session featuring extreme range and volume. Price was choppy for most of the evening, but pressing higher. Then around 10pm New York a strong bid entered the market and drove price higher. The buying nearly took us to levels unseen in 10 sessions before stalling out up near the 10/21 highs. From there price reversed the entire gain and traded back to the Tuesday high. Buyers rejected a move back into the Tuesday range around 3am and we spent the rest of the Globex session rotating higher, but not exceeding the high print set around 1o:15pm. At 8:30am both ADP employment change and trade balance data came out below expectations. As we approach cash open, price is hovering just below the 10/21 midpoint.
Also on the economic calendar today we have crude oil inventories at 10:30am.
Yesterday we printed a normal variation up. The day began with a gap up in range and after a brief two way auction initiative buyers stepped in and drove price higher, driving higher and close the gap left behind last Thursday. Just beyond that open gap responsive sellers showed up and we worked into a tight flag for several hours. Around 2:15pm sellers rotated price back down to the daily midpoint and buyers defended. There was a steady rally into the end of the day but no new high was made. We ended the session back down near the midpoint.
Heading into today my primary expectation is for sellers to work into the overnight inventory and work a half gap down to 11,400 before two way trade ensues.
Hypo 2 stronger sellers work a full gap fill down to 11,224.25. Sellers take out overnight low 11,224.75 on their way to tagging 11,200. Look for buyers down at 11,159 and for two way trade to ensue.
Hypo 3 gap and go higher. Trade up to 11,818.50 before two way trade ensues.
Levels:
Volume profiles, gaps and measured moves:
