NASDAQ futures are coming into Thursday with a slight gap down after an overnight session featuring extreme range and volume. Price was balanced overnight, chopping along the lower half of Wedneday’s range. At 8:30am jobless claims data came out better-than-expected, and as we approach cash open price is hovering in the lower quadrant of Wednesday range.
Also on the economic calendar today we have 4- and 8-week T-bill auctions at 11:30am.
Yesterday we printed a double distribution trend down. The third in a row. Yesterday began with a slight gap up in range and after a brief two-way auction sellers stepped in and resolved the gap. Then we pushed up through the mid and for most of the morning it looked like buyers may have kept us above the mid but then sellers re-emerged in the afternoon, reclaiming the mid and pushing us into a late range extension down. We ended near the lows of the day but well off the lows of the week.
Heading into today my primary expectation is for sellers to work down through overnight low 13,451 setting up a move down through Tuesday low 13,380.75. Look for buyers down at 13,337 and for two way trade to ensue.
Hypo 2 buyers press up through overnight high 13,570.50 on their way to tagging 13,600.
Hypo 3 stronger sellers tag 13,300. Look for buyers ahead of 13,273.50.
Levels:
Volume profiles, gaps and measured moves:
