NASDAQ futures are coming into the second day of December gap down after an overnight session featuring elevated range and volume. Price was balanced overnight, chopping along the middle of Monday’s range. At 9:15am ADP employment data came out worse than expected and as we approach cash open price is hovering below the Monday midpoint.
Also on the economic calendar today we have Fed Chairman Powell speaking at 10am, crude oil inventories at 10:30am and the Fed beige book at 2pm.
Yesterday we printed a double distribution trend up. The day began with a breakaway gap. Buyers drove higher after an open two-way auction probing up near all-time high before falling back to the midpoint by mid morning. Buyers defended the mid setting up a rally that pressed higher through 2:30pm, making a new all-time high and setting the VPOC up near the highs before falling back to the midpoint late in the session. Buyers defended the mid again and we ended the day in the upper quadrant of range.
Heading into today my primary expectation is for buyers to work into the overnight inventory and close the gap up to 12,464.25. From here buyers continue higher, trading up through overnight high 12,473.50. Look for sellers up at 12,497.25 and for two way trade to ensue.
Hypo 2 stronger buyers probe up through all-time high 12,512.25, tagging 12,550 before two way trade ensues.
Hypo 3 sellers press don to 12,351.75 before two way trade ensues.
Levels:
Volume profiles, gaps and measured moves:
