NASDAQ futures are coming into the final day before Thanksgiving down about -115 after an overnight session featuring extreme range and volume. Price was balanced overnight, balancing along the Tuesday midpoint until 8:30am when a slew of economic data hit the tape. GDP came out in line with expectations. Durable goods order slightly below the low end of expectations. Jobless claims better-than-expected. As we approach cash openprice is hovering in the lower quadrant of Tuesday’s range.
Also on the economic calendar today we have new home sales and consumer sentiment at 10am followed by crude oil inventories at 10:30am. Then the FOMC minutes are due out at 2pm.
Yesterday we printed a normal variation down. The day began with a gap down below range. After a brief test lower buyers drove into the gap and closed it. Sellers rejected a move back into Monday range shortly thereafter setting up a selloff that lasted through to mid afternoon. Buyers stepped in ahead of last week’s low, down in the lower quadrant of Monday’s range and we ramped higher for the rest of the session, eventually crossing the mid and closing above it.
Heading into today my primary expectation is for buyers to work into the overnight inventory and close the gap up to 16,268.75. Buyers continue higher, taking out overnight high 16,356. Look for sellers up at 16,371.50. Then look for the third reaction to the FOMC minutes to dictate direction into the close.
Hypo 2 sellers press down through Tuesday low 16,118. Look for buyers down at 16,100. Then look for the third reaction to the FOMC minutes to dictate direction into the close.
Hypo 3 stronger sellers tag 16,041.75. Then look for the third reaction to the FOMC minutes to dictate direction into the close.
Volume profiles, gaps and measured moves:
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