NASDAQ futures are coming into the Wednesday before OPEX essentially flat after an overnight session featuring elevated range and volume. Price was balanced overnight. Balancing along the Tuesday midpoint. At 8:30am housing starts/permits data was mixed with starts below forecast and permits above. As we approach cash open price is trading just above the Tuesday midpoint.
Also on the economic calendar today we have crude oil inventories at 10:30am, a 20-year bond auction at 1pm and the FOMC minutes at 2pm.
Yesterday we printed a neutral day. The day began with a gap down in range and after a brief test higher at the open sellers drove into the tape, effectively tagging the Monday VPOC which had stayed down near the lows. Buyers reacted here, driving price to an early range extension up which was met with swift responsive selling. These sellers managed to press prices into a neutral print and down below Wednesday’s low. Low of day would print a bit after 1pm New York and we spent the rest of the session working back towards the daily midpoint, eventually closing slightly above it.
Heading into today my primary expectation is for buyers to work up through overnight high 15,028.25 before two way trade ensues.
Hypo 2 sellers press down through overnight low 14,951.50 on their way to tagging 14,900.
Hypo 3 full on liquidation down to 14,827.
Levels:
Volume profiles, gaps and measured moves:
