NASDAQ futures are coming into Wednesday gap up after an overnight session featuring elevated range and volume. Price was balanced overnight, balancing along the bottom-side of the Tuesday midpoint. As we approach cash open price is hovering down below the Wednesday midpoint.
On the economic calendar today we have industrial production at 9:15am followed by crude oil inventories at 10:30am.
Yesterday we printed a double distribution trend down. The day began with a gap up in range. The gap was up into a conviction selling zone printed Monday and after a brief open-test higher sellers stepped in and defended their region. Said selling worked the overnight gap shut and pressed beyond it before finding some responsive buyers in the lower quadrant of Monday’s range. Said buyers shot price up through the daily midpoint a bit before an excess high formed and sellers reclaimed the mid. Selling continued into the late afternoon but did not quite exceed the Tuesday low. Instead there was a bit of a ramp higher into settlement.
Heading into today my primary expectation is for buyers to press higher on the open, pressing up through overnight high 15,434 on their way to tagging 15,500.
Hypo 2 stronger buyers tag 15,571.50 before two way trade ensues.
Hypo 3 sellers work into the overnight inventory and close the gap down to 15,398.75. Sellers continue lower, tagging 15,328.
Volume profiles, gaps and measured moves:
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