NASDAQ futures are coming into the final month of 2020 up a quick +100 after an overnight session featuring elevated volume and extreme range. Price drove higher overnight, rallying steadily until about midnight. Then, about 50 points below record high sellers stepped in. Since then we have been in a tight flag along the highs and as we approach cash open, price is hovering up near the all-time high print.
On the economic calendar today we have lots to digest at 10am—ISM manufacturing, construction spending plus some talk out of Fed Chairman Powell. There is a 52-week T-bill auction at 11:30am.
Yesterday we printed a neutral extreme up. The day began about flat and after a choppy open two-way auction sellers stepped in and drove price lower, printing a sharp unidirectional sell-off down into last Wednesday’s range. Buyers stepped in near the lower quadrant of Wednesday’s range and began working price higher. Sellers defended the daily midpoint the first time around, but a second thrust pressed through it. The rest of the session was spent rallying, reversing the early selling and eventually pressing into a neutral print right at settlement. Closing on the high.
Neutral extreme up.
Heading into today my primary expectation is for buyers to gap-and-go higher, trading up through overnight high 12,401.75 and closing the open gap at 12,411.50 before two way trade ensues.
Hypo 2 stronger buyers take out all-time high 12,436. Look for sellers up at 12,448 and for two way trade to ensue.
Hypo 3 sellers work into the overnight inventory and close the gap down to 12,296.75 then continue lower, down through overnight low 12,292.25. Look for buyers down at 12,223.50 and for two way trade to ensue.
Volume profiles, gaps and measured moves:
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