NASDAQ futures are coming into Wednesday up a quick +90 after an overnight session featuring extreme range and volume. Price was balanced overnight, balancing along the bottom-side of Tuesday’s midpoint until about 4:20am New York when buyers initiated a rotation higher. Said buyer sent price up through Tuesday mid but not beyond the Tuesday high. As we approach cash open price is hovering about +15 points above the Tuesday mid.
On the economic calendar today we have more testimony from Fed Powell and Treasury Yellen at 10am, crude oil inventories at 10:30am, a 2-year note auction at 11:30am followed by a 1pm note auction at 1pm.
Yesterday we printed a neutral extreme down. The day began with a slight gap up inside range. Sellers quickly resolved the open gap after an open two way auction. Sellers could not take the conviction buying zone printed Monday however. Instead a weak double low formed before we set off to probe beyond the Monday high. This probe higher put us into a range extension up but was quickly faded back to the mid. After several hours chopping the mid sellers pressed to a new low of day late in the session and closed down on it.
Heading into today my primary expectation is for sellers to work into the overnight inventory and close the gap down to 13,029. Look for buyers down at 13,000 and for two way trade to ensue.
Hypo 2 buyers take out overnight high 13,145.25 on their way to closing the FOMC gap up at 13,189.
Hypo 3 stronger buyers trade up to 13,272.25.
Volume profiles, gaps and measured moves:
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