NASDAQ futures are coming into Thursday up a quick +80 after an overnight session featuring extreme range and volume. Price was balanced overnight, balancing along the upper quadrant of Wednesday’s range until about 8:30am when jobless claims data came out better than expected and sent price higher. As we approach cash open price is hovering near the Tuesday midpoint.
Also on the economic calendar today we have 4- and 8-week T-bill auctions at 11:30am followed by a 10-year TIPS auction at 1pm.
Yesterday we printed a double distribution trend up. The day began with a gap down to a new weekly long and then a drive higher at the open. Price drove higher, then chopped back to the mid before beginning a steady campaign higher. The buying ultimately closed the overnight gap before checking back to the mid around the release of the 2pm FOMC minutes. Buyers defended the mid and price campaigned higher into the close, closing in the lower quad of Tuesday range.
Heading into today my primary expectation is for buyers to gap and go higher to 13,333 before two way trade ensues.
Hypo 2 stronger buyers trade up to 13,372.50 before two way trade ensues.
Hypo 3 sellers press down through overnight low 13,150 setting up a tag of 13,100 before two way trade ensues.
Levels:
Volume profiles, gaps and measured moves:
