NASDAQ futures are coming into Wednesday with a slight gap up after an overnight session featuring elevated volume and range. Price worked down through the Tuesday low for a bit, poking down into Monday’s lower quadrant but not exceeding the low before popping back to UNCH. At 8:30am housing starts/permits came out slightly better than expected. As we approach cash open price is hovering below the Tuesday midpoint.
Also on the economic calendar today we have crude oil inventories at 10:30am followed by as 20-year bond auction at 1pm.
Yesterday we printed a neutral day. The session began with a slight gap down. Buyers were able to resolve the open gap during an open two-way auction and even took out the Monday high by a few ticks before sellers stepped in. Said sellers worked price back down to the Monday midpoint but were met there by a strong responsive bid. Said bidders worked price back up through the midpoint and we sort of chopped all over the mid until going range extension up around 1:45pm New York. After a bit more chop, some late day sellers pressed us into a neutral print. The day ended with price flagging along the lower quadrant of the day’s range.
Heading into today my primary expectation is for buyers to press up through overnight high 12,023 setting up a tag of 12,036.75 before two way trade ensues.
Hypo 2 sellers press down to 11,944 before two way trade ensues.
Hypo 3 stronger sellers press down through overnight low 11,916.50 setting up a tag of 11,900 before two way trade ensues.
Volume profiles, gaps and measured moves:
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