NASDAQ futures are coming into Thursday up a quick +120 after an overnight session featuring extreme range and volume. Price drifted higher overnight, steadily overtaking the Wednesday midpoint. As we approach cash open price is hovering above the Wednesday midpoint.
There are no economic events scheduled for today and fixed income markets are closed for trade in observation of Armistice Day.
Yesterday we printed a doubled distribution trend down. The day began with a gap down outside range, down in the upper quadrant of last Wednesday’s range. After an open test lower, responsive buyers stepped in and drove price higher, effectively reclaiming the Tuesday range and closing the overnight gap. Price held Tuesday range until about 11:30am New York when sellers rejected price back out of range. Buyers defended the midpoint the first time around but sellers soon converted it, then defended it, setting up a run to range extension down. This triggered an acceleration down through last Wednesday’s range before two way trade ensued.
Interestingly, value never shifted lower on yesterday’s profile. It remains pinned up up in the upper quadrant.
Heading into today my primary expectation is for buyers to work up to yesterday’s VPOC 16,180.
Hypo 2 stronger buyers trade up to 16,264.
Hypo 3 sellers work into overnight inventory and close the gap down to 15,980.25. Look for buyers down at 15,945.25.
Levels:
Volume profiles, gaps and measured moves:
