NASDAQ futures are coming into Thursday with a slight gap up after an overnight session featuring normal range and volume. Price was balanced overnight, balancing along the high print of Wednesday trade. Jobless claims data came out better than expected at 8:30am, and as we approach cash open price is hovering at the Wednesday high.
Also on the economic calendar today we have ISM services index at 10am followed by 4- and 8-week T-bill auctions at 11:30am.
Yesterday we printed a double distribution trend up. The day began with a gap down and open drive lower. The drive down probed briefly below the Tuesday low but was unable to resolve the gap left behind early Tuesday morning (December 1st). Instead responsive buyers were on the scene within the first 15 minutes of action and turned the auction around. The rest of the session was spent campaigning higher, eventually closing the overnight gap and ending on the high of the day, up inside the upper quadrant of Tuesday’s range.
Heading into today my primary expectation is for sellers to work into the overnight inventory and close the gap down to 12,469.75. From here sellers continue lower, tagging 12,407.75 before two way trade ensues.
Hypo 2 buyers reject a move back into Wednesday high 12,472 setting up a probe beyond all-time high 12,512.25. Look for sellers around 12,550 and for two way trade to ensue.
Hypo 3 stronger buyers probe up into open air and rally up to 12,600.
Volume profiles, gaps and measured moves:
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