NASDAQ futures are coming into Friday flat after an overnight session featuring extreme range and volume. Price was balanced overnight, balancing along the upper half of Thursday’s range. As we approach cash open price is hovering in the upper quadrant of Thursday’s range.
There are no economic events today.
Yesterday we printed a double distribution trend up. The day began with a pro gap down below the prior three days’ ranges. After a tight open-two-way auction outside range buyers stepped in and attempted the reclaim the Tuesday (weekly) low. Sellers rejected the move, sending price down near, but not quite closing the open gap left behind July 1st. Instead responsive buyers stepped in and formed a sharp excess low. This would be the low of the sesion. After chopping along the top-side of the mid until about noon, buyers stepped in and rallied price back up near the Wednesday low. Sellers met this action and sent price back down to the mid, but a late-day ramp propelled prices back near the high into the close.
Heading into today my primary expectation is for buyers to work up through overnight high 14,742.75 pm their way to tagging 14,788.25.
Hypo 2 sellers press down through overnight low 14,640.75 and tag the Thursday VPOC at 14,635 before two way trade ensues.
Hypo 3 stronger sellers trade down to 14,528.50 before two way trade ensues.
Volume profiles, gaps and measured moves:
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