NASDAQ futures are coming into Friday with a slight gap up after an overnight session featuring elevated range on normal volume. Price was balanced overnight, balancing along the lower quadrant of Thursday’s range. As we approach cash open, price is hovering in the lower quad of Thursday range.
On the economic calendar today we have PMI composite flash at 9:45am followed by new home sales at 10am.
Yesterday we printed a neutral extreme down. The day began basically flat and then a open drive down. Buyers defended the Wednesday VPOC and worked price higher, making an early range extension up while taking out Wednesday high. A check back to the midpoint was defended by buyers but before a new high could be made the tax news hit the tape and sent price lower. We quickly entered a neutral print and eventually probed below the Wednesday low before coming into a choppy balance along the low for the remainder of the session.
Heading into today my primary expectation is for sellers to press down through overnight low 13,737 on their way to taking out the Thursday low 13701.75. Look for buyers just below at 13,687 and for two way trade to ensue.
Hypo 2 buyers drive higher on the open, reclaiming 13,800 early on and sustaining trade above it, setting up a “return to the scene of the crime” up at the Thursday VPOC 13,925.50.
Hypo 3 stronger buyers trade up to 14,000 before two way trade ensues.
Volume profiles, gaps and measured moves:
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